Individuals (Sackler Family Members) Cannot Get Bankruptcy Protection -- If They Don't File For... Bankruptcy.

We mentioned this in detail two weeks ago, but have been following it for at least seven years, on and off.

Tonight's decision is not at all surprising -- for any real person who's handled personal bankruptcies, on a pro bono basis -- though it may come as a surprise, to some. . . billionaires.

Tonight, the able USDC Judge McMahon in Manhattan has ruled that unless the individual Sackler family members are willing to file bankruptcy, and surrender almost all their assets (as all other ordinary humans must, to be granted a bankruptcy discharge of debts, suits and liabilities). . . they may not escape the liabilities imposed by future suits, on fostering opioid addiction. Here it is, in full (142 pages!) -- and a bit:

. . .Aided by superb briefing and argument on both sides of the question, and by extended ruminations on the subject by several esteemed bankruptcy judges of our own District -- Judge Drain not the least -- this Court concludes that the Bankruptcy Code does not authorize such nonconsensual non-debtor releases: not in its express text (which is conceded); not in its silence (which is disputed); and not in any section or sections of the Bankruptcy Code that, read singly or together, purport to confer generalized or “residual” powers on a court sitting in bankruptcy. For that reason, the Confirmation Order (and the Advance Order that flows from it) must be vacated.

Because I conclude that the Bankruptcy Court lacked statutory authority to impose the Section 10.7 Shareholder Release, I need not and do not reach the constitutional questions that have been raised by the parties. Nor do I need to decide whether this is a case in which such releases should be imposed if my statutory analysis is incorrect. Those issues may need to be addressed some day, but they do not need to be addressed in order to dispose of this appeal. . . .

So -- unless these individual Sackler family billionaires are willing to file a chapter, and leave court with only $6,000 in total to their names (i.e., never will they do that) -- per person. . . they will not escape suits for this decades long blight on countless American families, from opioid addiction.

And that is. . . justice. Of course there will be appeals, from here -- but this is a solid first step to making every human equal, before the law. Grinning -- ear to ear, here now.

नमस्ते