10 Major Issues That Justices Must Decide In Summer
America ı By Rochdi Rais
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The case is Securities and Exchange Commission v. Jarkesy et al., case number 22-859.
Bankruptcy Releases
U.S. Trustee William K. Harrington has asked the Supreme Court to prohibit bankruptcy courts from approving Chapter 11 organization plans that include third-party nonconsensual releases, which in this case would free members of the Sackler family, owners of Purdue Pharma LP, from liability for damages stemming from the opioid epidemic.
Harrington argues the Bankruptcy Code doesn't authorize bankruptcy judges to approve such wide-sweeping releases that can be entered in to without the consent of potential litigants. Purdue Pharma, on the other hand, argues those releases fall squarely into the Bankruptcy Codes' allowance for creative reorganization plans. This specific release, the company says, also serves the public interest and allows claimants to recover more damages from an established fund than they would if they sued the Sacklers individually.
A majority of justices appeared cautious at oral arguments in December of banning releases, which is common and has a long history, but at least one member of the court, Justice Ketanji Brown Jackson, suggested the Sacklers shouldn't get off so easily.
The case is Harrington v. Purdue Pharma LP et al., case number 23-124.
Jan. 6
Former Pennsylvania police officer Joseph W. Fischer wants the justices to rein in the federal government's reading of the Sarbanes-Oxley Act's obstruction of Congress provision, which was enacted in the wake of the 2001 Enron Corp. accounting scandal and has been levied against roughly 300 defendants accused of storming the U.S. Capitol on Jan. 6, 2021, to protest the 2020 presidential election results.
Fischer, one of the defendants charged with obstruction, claims the text and history of the provision, 18 U.S.C. Section 1512(c)(2), prove it was only meant to apply to obstructive acts taken toward documents or records that could be used in congressional investigations. But the federal government argues the provision was meant to be a catch-all that could be applied to any obstructive act, specifically those that Congress wasn't aware of at the time the statute was written.
At oral arguments in April, the justices appeared divided along ideological lines, with the conservative justices leaning toward Fischer's reading and the liberal justices inclined to agree with the government. But Justices Amy Coney Barrett and Jackson provided some hope that a compromise could be reached and that a reading of the provision to apply to actions affecting the availability of documents may be adopted.
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