SCOTUS rules US bankruptcy law only shields those who sought its protection; SNAP applauds decision

For immediate release: June 27, 2024

The Supreme Court of the United States today ruled that “U.S. bankruptcy law doesn't afford bankruptcy courts the kind of power needed to block lawsuits against parties who haven't filed for bankruptcy.” SNAP, the Survivors Network of those Abused by Priests, believes the Court made the correct decision, and that it will help survivors whose lawsuits for child sexual abuse have been shifted into bankruptcy court.

The ruling in the case invalidated a bankruptcy deal involving Purdue Pharma, maker of Oxycontin, and members of the Sackler family, who owned the drug firm. However, it is likely to impact the resolution of other bankruptcy cases as well. Institutions like the Catholic Church and the Boy Scouts, that filed for protection in the wake of thousands of lawsuits for child sexual abuse, will be affected by this decision. In fact, both filed briefs in support of upholding the Purdue Pharma deal.

We applaud this decision. We believe that it promises to shift US bankruptcy law away from protecting  large organizations, and in favor of victims and survivors who have suffered devastating injuries.

CONTACT: Melanie Sakoda, SNAP Survivor Support Director ([email protected], 925-708-6175), Mike McDonnell, SNAP Communications Director ([email protected], 267-261-0578), Shaun Dougherty, SNAP Interim Executive Director ([email protected], 814- 341-8386) 

(SNAP, the Survivors Network, has been providing support for victims of sexual abuse in institutional settings for more than 35 years. We have more than 25,000 survivors and supporters in our network. Our website is SNAPnetwork.org)

SNAP Network is a GuideStar Gold Participant