[HN Gopher] Purdue Pharma can protect Sackler owners in opioid b...
       ___________________________________________________________________
        
       Purdue Pharma can protect Sackler owners in opioid bankruptcy,
       court rules
        
       Author : nceqs3
       Score  : 103 points
       Date   : 2023-05-30 18:18 UTC (4 hours ago)
        
 (HTM) web link (www.ca2.uscourts.gov)
 (TXT) w3m dump (www.ca2.uscourts.gov)
        
       | boeingUH60 wrote:
       | If only El Chapo and his cohorts were smart enough to sell drugs
       | the legal way and get away with it...
        
         | wmf wrote:
         | Mexican cartels have started inserting themselves into legal
         | businesses like farming within their territory, increasing
         | prices and taking the resulting profits.
        
         | NoMoreNicksLeft wrote:
         | Purdue manufactured opioids in measured doses without unsafe
         | adulterants.
         | 
         | Guess what? Junkies lived. Turns out that when they get a clean
         | high manufactured by competent pharmaceutical engineers, they
         | tend not to be found catatonic by callous law enforcement who
         | say "fuck it" and refuse to save their lives with the naloxone
         | they have with them.
         | 
         | When did junkies start dying? With the supply of oxy dried up
         | because the DEA shut down pill mills, they had no other options
         | than dirty street heroin that it turns out is mostly just
         | fentanyl and carfentanyl.
         | 
         | I have no clue how this is considered an improvement by the
         | media that reports on such things, or why so many are so eager
         | to buy it.
         | 
         | If El Chapo started selling clean/safe drugs that didn't kill
         | people, how the fuck would he be anything other than a
         | goddamned hero? How many are dying of overdoses every week
         | again?
        
           | bb88 wrote:
           | When a company pursues to market an addictive drug, and
           | knowingly sells it to counties that had 5 to 10 times more
           | opioid prescriptions than people, that's illegal and that
           | should be stopped.
           | 
           | Knowing this and allowing them to do it anyway would be a
           | dystopia I want no part of.
        
             | NoMoreNicksLeft wrote:
             | > that's illegal and that should be stopped.
             | 
             | It should be legalized.
             | 
             | Death-by-opiate/opioid-overdose shrank while they were
             | selling this. Shutting down the pill mills _killed_ people.
             | Like, more people are dying now than otherwise would. And
             | you 're ok with that?
             | 
             | I guess when the DEA makes up bullshit, you're just happy
             | to parrot it.
             | 
             | > Knowing this and allowing them to do it anyway would be a
             | dystopia I want no part of.
             | 
             | You're in the dystopia now. You're just insulated from it.
             | Something close to 100,000 people will this year because
             | they're using dirty street drugs and fucking elephant
             | tranquilizer instead of Purdue's safe drugs.
             | 
             | WTF. I wish I got to live in a world where evil was
             | committed by supervillains doing it deliberately, rather
             | than this clownworld where people do it and think they're
             | the good guys. You should be ashamed of yourself. Go do
             | some fucking self-reflection.
        
       | john006 wrote:
       | [flagged]
        
         | reocha wrote:
         | What are you trying to say here?
        
           | john006 wrote:
           | [flagged]
        
       | JumpCrisscross wrote:
       | Is there a credible criminal complaint against the Sacklers? Not
       | "we don't like them" allegations, but specific and credible
       | allegations of criminality?
        
         | uoaei wrote:
         | There are very real costs to the national economy that result
         | from killing, harming, or incapacitating millions of otherwise-
         | capable working-age folks by knowingly getting them addicted to
         | opioids and building the business infrastructure to expand that
         | influence as wide as possible. Surely there is a law that can
         | be interpreted to compensate for the effects that this campaign
         | has wrought on society.
        
           | recursivedoubts wrote:
           | _> There are very real costs to the national economy that
           | result from killing, harming, or incapacitating millions of
           | otherwise-capable working-age folks _
           | 
           | and then there's the killing, harming, or incapacitating
           | millions of folks, on top of that!
        
             | uoaei wrote:
             | Yes I was only appealing to the legalistic interpretation.
             | The larger story is that such evil is banal-ified when we
             | stick to arguing only for legal interpretations of their
             | choices and actions.
             | 
             |  _Eichmann in Jerusalem_ helps cast light on what people
             | mean when they talk about things like systemic harms.
        
         | ethbr0 wrote:
         | I think it boils down to whether laundering money should be
         | legal. As far as I know, it is, in this sense.
         | 
         | - Everybody acknowledges Purdue Pharma broke the law and acted
         | unethically.
         | 
         | - Everyone acknowledges Purdue Pharma made a lot of money
         | directly from doing the above.
         | 
         | - Everyone acknowledges the Sackler family took a lot of money
         | out of Purdue Pharma, including after they specifically knew
         | Purdue Pharma was likely to pay judgements for the above.
         | 
         | - What's unclear is how we should treat the Sackler money as a
         | result of all of this.
         | 
         | Bankruptcy law, as I understand it, limits itself to the
         | possibly-enforceable and attempts to generate the best outcome
         | for creditors.
         | 
         | Which by definition involves negotiation between profiteering
         | owners (who want to give up as little of their ill-gotten money
         | as possible) and creditors (who want as much money as
         | possible).
         | 
         | And since, at the end of the day, owners can always hide money
         | overseas or in trusts... creditors have an incentive to settle
         | for less-than-everything.
         | 
         | So this is less about criminal culpability and more about
         | negotiation.
        
           | londons_explore wrote:
           | Hasn't this area of law been pretty much static for 100+
           | years?
           | 
           | Surely this exact case has happened before? It's gotta be
           | pretty common for a company to be wildly profitable for a
           | while, then suddenly bankrupt, and some owners have extracted
           | all the profits in the meantime.
        
             | tomatocracy wrote:
             | No idea if they're completely unique but the legal
             | circumstances here appear to me to be at least unusual so
             | this certainly isnt a common company bankruptcy story:
             | shareholders agreed to pay money into the bankruptcy estate
             | of the companies in return for a release of related, but
             | separate, litigation claims from third parties against
             | them.
        
               | ethbr0 wrote:
               | From my reading, trading money into a bankruptcy pot in
               | exchange for personal liability protection didn't seem
               | that unusual and is apparently commonplace nowadays.
               | 
               | Whether it should be or not... probably not. But then
               | we'd need much tougher laws to compel compliance with
               | personal judgements as a consequence of bankruptcy
               | proceedings (e.g. revoking citizenship, foreign country
               | cooperation, etc).
               | 
               | If we removed the possibility for liability protection as
               | part of a deal, shareholders would have less incentive to
               | cooperate financially, and so there'd need to be a bigger
               | enforcement stick to balance the equation.
        
             | ethbr0 wrote:
             | I think the difference here is that it was a family company
             | (providing a "singular" benefiting target to vilify and
             | pursue) and the number of aggrieved parties.
             | 
             | If it were instead 1,000 different shareholders and
             | corporate officers, I think the public would have lost
             | interest.
        
               | dylan604 wrote:
               | I think this is downplaying the effect of the devastation
               | their actions have caused. Pretty much everyone knows
               | someone impacted by their products. As the degrees of
               | separation increases, so does the number of people
               | brought into the world of addiction. personally, i know
               | many people that have opiate addictions, and not one of
               | them was introduced to them from buying them on the
               | street or were addicts of anything prior.
        
         | johndhi wrote:
         | Opinions vary widely. There are credible criminal claims for
         | stuff like "conspiracy to influence the FDA to ignore contrary
         | evidence" that you could call either criminal or standard
         | business practice depending on how on-fire your hair is.
        
         | bhouston wrote:
         | The company they ran has been found guilty of criminal charges
         | twice:
         | 
         | "Purdue has twice pleaded guilty to criminal charges, but no
         | members of the Sackler family have been charged with crimes."
         | 
         | https://www.pbs.org/newshour/nation/after-years-of-pain-opio...
        
           | JumpCrisscross wrote:
           | > _company they ran has been found guilty of criminal charges
           | twice_
           | 
           | I'm wondering about the "members of the Sacklers family."
        
         | shrubble wrote:
         | Mis-labeling of a drug and withholding relevant information
         | about an approved drug from the FDA (I think it is called
         | 'surveillance') would be two things to examine I would think...
        
       | droopyEyelids wrote:
       | And here rests another piece of the legitimacy of our government.
       | 
       | From time to time you see the latest Corruption Perception Index
       | scores come out [1] and the USA always ranks among the least
       | corrupt countries.
       | 
       | That's due to the difficulties in defining corruption. Here in
       | the USA I think there is very little illegal corruption that
       | happens. Very few people avoid a speeding ticket by greasing the
       | palm of a police officer.
       | 
       | Instead we have stuff like this, where a powerful family, aided
       | by the most prestigious management consultants [2] kill and
       | addict millions of citizens, but they took steps to ensure the
       | law accommodated their evil, and protected them afterwards. It's
       | not technically corruption because they worked within the system
       | to pass their laws and peddle their dope.
       | 
       | So then it's not just local police, or a local government, or
       | even one administration that people see is corrupt and working
       | against us, but the entire system of government, 'by the people,
       | for the people' has somehow been perverted, and turned into a
       | sham.
       | 
       | And then these same villains see how the people have no mechanism
       | to fight back, they see all we can do is roll over and take it,
       | and it inspires them to think about what they can get away with
       | next.
       | 
       | [1] https://en.wikipedia.org/wiki/Corruption_Perceptions_Index
       | [2] https://hub.jhu.edu/2022/06/30/mckinsey-opioid-documents-
       | arc...
        
         | RobotToaster wrote:
         | America just rebrands corruption as "lobbying", then pretends
         | corruption is something that happens elsewhere.
        
           | NoMoreNicksLeft wrote:
           | Lobbying... that's the kind of corruption that's enshrined in
           | the first amendment, right? So important they didn't even
           | leave it for the second or third or tenth amendments? The
           | amendments which are collectively known as the Bill of
           | Rights, or the United States' founder's first attempt at
           | crafting a list of fundamental human rights?
           | 
           | That one?
        
           | boeingUH60 wrote:
           | Lobbying can be murky but is not comparable to raw corruption
           | like in third-world countries. Anyone is free to lobby a
           | politician...if I call my local representative or Senator and
           | press them about an issue, then I'm lobbying. Equating it
           | with corruption frankly indicates ignorance.
        
         | TimPC wrote:
         | In all honesty while they rank the US as low on a corruption-
         | scale globally they do capture a fair amount of the corruption
         | in the US. The US has similar scores to Bhutan and Seychelles
         | not Denmark and Canada.
         | 
         | As for the case itself, it seems the court wants to protect the
         | settlement because they know it's unlikely they will be able to
         | pierce the veil of corporate protection and go after the
         | owner's for the $5.5-$6 billion that is only voluntarily
         | contributed if the settlement works. In considering the greater
         | good I think the win of $5.5-$6 billion in additional
         | settlement money for victims is a greater good than the
         | restrictions on potential lawsuits against the Sacklers is an
         | evil. Ideally any victims who had their rights restricted by
         | this clause would have an option to be a late joiner of the
         | settlement and could ensure compensation that way.
        
         | ccooffee wrote:
         | I think cases like this are outside the scope of the Corruption
         | Perceptions Index. At least, your wikipedia link describes it
         | as: (*emphasis* mine)
         | 
         | > The Corruption Perceptions Index (CPI) is an index which
         | ranks countries "by their perceived levels of *public sector
         | corruption*, as determined by expert assessments and opinion
         | surveys.
         | 
         | From skimming the court order, it seems that this is an
         | instance of private sector corruption. In 2004, the Purdue
         | board (which included at least 6 Sackler family members)
         | created a policy to indemnify the board, executives, and some
         | others against any claims/suits/etc. There was a narrow carve-
         | out where a court decision that someone acted in "bad faith"
         | would void the indemnification.
        
         | ly3xqhl8g9 wrote:
         | The adage "we have a legal system, not a justice system" is
         | repeated _ad nauseam_ in these cases. But thinking about it:
         | what if we were to have none, neither legality, nor justice,
         | but simply randomness, _fiat fortuna, et pereat mundus_ [1].
         | 
         | An example in this case would be: instead of all the boring
         | legalese, the high-paid BigCons [2], and the unfulfillable
         | expectation of pristine judgements, to have just a coin flip:
         | 50% chance for guilty, 10 years jail, 50% chance free as a
         | bird. Skew it even further, for every person killed or $1
         | million stolen add some percentages to the guilty chance and
         | some years to the penalty. Solve every lawsuit in a matter of
         | seconds, nothing to debate [3], no false belief of fairness or
         | equity, just sheer, dumb luck, for the society or for the
         | accused.
         | 
         | [1]
         | https://en.wikipedia.org/wiki/Fiat_iustitia,_et_pereat_mundu...
         | 
         | [2] 2023, Mariana Mazzucato, _The Big Con: How the Consulting
         | Industry Weakens Our Businesses, Infantilizes Our Governments,
         | and Warps Our Economies_
         | 
         | [3] 'Lawyer cited 6 fake cases made up by ChatGPT; judge calls
         | it "unprecedented"', lots of _unprecedented_ to come in the
         | near future, https://arstechnica.com/tech-
         | policy/2023/05/lawyer-cited-6-f...
        
         | john005 wrote:
         | [flagged]
        
       | bombcar wrote:
       | As an aside, those with large net worths should consider
       | bankruptcy planning. It's not really "fun" but nobody _intends_
       | to go bankrupt, and states vary _widely_ in what is excluded,
       | especially in the homestead exemption.
       | 
       | For example, Florida, DC, Iowa, Kansas, Oklahoma, South Dakota,
       | Texas have unlimited (of various flavors, for example Texas is
       | 100/200 acres rural (single/family) or 1 acre urban). Most
       | require something like 40 months living, but consult an advisor.
        
         | dylan604 wrote:
         | This seems like an actual bit of planning for the wealthy done
         | not by themselves but their advisors. Some people might be down
         | voting for it being cynical, but you know that those that have
         | money have paid people to consider every possible angle at how
         | to not only protect their money but turn a profit in situations
         | that would otherwise devastate an average person.
        
           | bombcar wrote:
           | The very wealthy certainly use it (the most famous case being
           | OJ Simpson) but even if you're not 1% wealthy, but have
           | assets, you should at least consider it. Especially if you're
           | looking to move anyway, it could be a factor.
           | 
           | > Annual bankruptcy filings in calendar year 2022 totaled
           | 387,721, compared with 413,616 cases in 2021, according to
           | statistics released by the Administrative Office of the U.S.
           | Courts.
        
             | dylan604 wrote:
             | There are all sorts of techniques/tricks/hacks (depending
             | on your style) of using the system that does not require 1%
             | kind of income. Sort of that line from The Firm, "I want to
             | bend the law as far as I can without breaking it." You can
             | form a corp and place all of your assets in it, then have
             | your employer hire the corp and not you so you earn no
             | income. You don't own a house, but your corp does and
             | allows you to stay there. Stuff that sounds shady AF, but
             | is legal but might require you to spend a few hours going
             | over paperwork with members of the gov't from time to time
             | 
             | edit: removing the repeated comments
        
       | ethbr0 wrote:
       | We can't have judicial activism only when it pleases us. Either
       | laws are applied in the way they are written... or what are they
       | for?
       | 
       | The 2nd Circuit Court of Appeals finds that the Bankruptcy Code,
       | as currently written, allows for this action.
       | 
       | That the Sackler family is a bunch of profiteering, morally-
       | bankrupt assholes is immaterial.
       | 
       | If we feel this is an unjust outcome, change starts with Congress
       | passing laws that alter the Bankruptcy Code.
        
         | anigbrowl wrote:
         | In recent decades, ballot initiatives that allow the public to
         | vote directly on a legal change have proved a significantly
         | faster way to get something done than the legislative process.
         | Indeed, in some US states initiatives that become law are
         | subsequently stymied by the legislative or executive branches.
         | In an era of instantaneous networked communication, the
         | traditional model of governance and the informal party
         | structure seem to function more as tools to divide and conquer
         | the population than to implement its policy aspirations.
        
           | Analemma_ wrote:
           | The ballot initiative system is a major part of why
           | California is such a dysfunctional shithole. Let's please
           | _not_ bring that godawful mess anywhere else.
        
           | dmitrygr wrote:
           | The best argument against direct democracy is a five minute
           | talk with the average voter. Try it.
        
             | anigbrowl wrote:
             | I have, of course. Have you ever talked to legislators?
             | Many of them are little better, either intellectually or
             | morally.
        
           | ethbr0 wrote:
           | Fair point, but direct democracy is also subject to the
           | passions of the masses overriding the concerns of experts.
           | Faster isn't always better.
           | 
           | E.g. by individually-benefit-but-mass-cost initiatives ("Vote
           | yes if you want $1"), exploiting insufficient education ("To
           | enshrine wildlife management into our constitution" that
           | actually permits nature exploitation), or overly emotional
           | issues-of-the-day ("Increase national security powers" after
           | a terrorist attack).
           | 
           | Though it seems like the sheer organizational barrier to
           | ballot inclusion (i.e. mass signature collection) limit the
           | worst excesses of the above.
           | 
           | In modern times, direct ballot initiatives definitely have
           | their place in a functioning democracy, although perhaps with
           | high barriers to listing, maximum numbers per ballot, and
           | cool-down periods ("Will be on the ballot X years from now").
        
             | nvahalik wrote:
             | > but direct democracy is also subject to the passions of
             | the masses overriding the concerns of experts
             | 
             | And likewise, sometimes the "experts" installed within the
             | bureaucratic system are not representative of the needs of
             | the society.
        
               | ethbr0 wrote:
               | Indeed! Which is why counterbalance and dampening of
               | oscillation are desirable features in a system of
               | government. But you over-emphasize that, and you get a
               | government incapable of action.
        
             | shw1n wrote:
             | Very eloquently stated
        
             | anigbrowl wrote:
             | _passions of the masses overriding the concerns of experts_
             | 
             | That is an issue, but I wasn't advocating for the inherent
             | superiority of referenda over legislative process, only
             | that it's more practical to get something done. It's
             | probably faster to get _yourself_ elected than it is to
             | lobby elected officials on some abstract or distributed
             | issue where there isn 't an obvious coalition.
             | 
             | I don't disagree with your other ideas, except for the
             | cool-down period. While that can certainly be abused,
             | asking people to sign up for something that can't be
             | manifested for several years into the future is an instant
             | demotivator to any action.
             | 
             | Having said that, I think the entire election machinery and
             | so on could usefully be replaced by digital voting, and
             | managed on an ongoing basis rather than at infrequent
             | intervals; a wikiocracy, so to speak. It will have flaws,
             | limitations, and be subject to abuse, but representative
             | democracy as practiced in most places is a 16th-18th
             | century political technology that is manifestly inadequate
             | for 21st century polities.
        
         | jjtheblunt wrote:
         | You know how the President can issue executive pardons?
         | 
         | Can the President also issue something like the inverse, for
         | cases where the law seems obviously buggy?
        
           | henriquez wrote:
           | No.
        
             | jjtheblunt wrote:
             | Thanks.
        
           | opwieurposiu wrote:
           | This is known as a Writ of Attainder and the United States
           | Constitution forbids it.
           | 
           | https://en.wikipedia.org/wiki/Bill_of_attainder
        
             | jjtheblunt wrote:
             | Thanks, and I didn't know of that. Humourously, my genuine
             | question was multiply downvoted. Odd.
        
         | jrflowers wrote:
         | The southern district of New York was doing judicial activism
         | and the second circuit of appeals was not?
         | 
         | Since both things are humans talking about their
         | interpretations of text, can you ELI5 why one was rooted in
         | activism and the other was rooted in objectivity?
        
           | jfengel wrote:
           | "Things I hate" are activism.
           | 
           | "Things I like" are reading the plain, obvious text of the
           | law/Constitution/16th century jurist that I've decided is
           | relevant.
        
         | beerpls wrote:
         | [flagged]
        
           | ethbr0 wrote:
           | I say this in the most respectful way, but apathy and
           | internet-complaining do not change make.
           | 
           | By what method do you suggest bankruptcy is changed?
        
             | beerpls wrote:
             | So when the mega wealthy control the laws and politicians
             | and then you come to me asking how we should get the laws
             | and politicians so what we want, what do you expect me to
             | say?
             | 
             | I'm not suggesting anything about bankruptcy. I'm saying
             | it's foolish to think voting will make this right
        
               | majormajor wrote:
               | "Voting" is certainly not a standalone answer to "how to
               | get Congress to change laws."
               | 
               | As you say, it's not gonna be easy to change politicians'
               | minds... so doing _nothing_ certainly won 't do it.
               | 
               | You can pick defeatism or you can get creative. Step 1 in
               | the US as it is is probably "find your own connected
               | people with access to money and work on getting them
               | involved."
               | 
               | It takes a long time, but I'd start with studying the
               | anti-abortion movement, the environment or climate ones,
               | or the ones around sexuality. Those are all fields where
               | the laws of the land have moved.
        
               | ethbr0 wrote:
               | So what will make this right?
               | 
               | It's clear what you're against -- what are you for?
        
           | boeingUH60 wrote:
           | Cynicism is the refuge of the weak-minded and weak-willed.
        
         | wolverine876 wrote:
         | You're assuming that the 2nd Circuit based their decision on a
         | valid reading of the law. Why do you believe that? (I don't
         | know, myself.)
         | 
         | The legal system does have a history of favoring the powerful
         | and connected.
        
           | ss108 wrote:
           | I think the alternative assumption would require some more
           | evidence. The notion they are correct is default (until they
           | are overruled by SCOTUS).
        
             | wolverine876 wrote:
             | I agree that it's the common default, but assuming by
             | default that the system is working isn't the act of a
             | responsible engineer, or citizen.
        
         | [deleted]
        
       | UKR_anon wrote:
       | [flagged]
        
         | ethbr0 wrote:
         | No, you're down voted for posting with an anonymous account,
         | preemptively complaining about being down voted, and not adding
         | anything interesting to the discussion.
         | 
         | https://news.ycombinator.com/newsguidelines.html
         | 
         | >> _Comments should get more thoughtful and substantive, not
         | less, as a topic gets more divisive._
         | 
         | >> _Avoid flamebait. Avoid generic tangents. Omit internet
         | tropes._
         | 
         | >> _Please don 't use Hacker News for political or ideological
         | battle. That tramples curiosity._
         | 
         | >> _Please don 't pick the most provocative thing in an article
         | or post to complain about in the thread. Find something
         | interesting to respond to instead._
         | 
         | >> _Throwaway accounts are ok for sensitive information, but
         | please don 't create accounts routinely. HN is a community--
         | users should have an identity that others can relate to._
         | 
         | >> _Please don 't comment about the voting on comments. It
         | never does any good, and it makes boring reading._
        
       | recursivedoubts wrote:
       | it's a big club
       | 
       | and you ain't in it
        
       | [deleted]
        
       | nneonneo wrote:
       | Being unaware of some of the details of this saga, I'm floored to
       | read the following:
       | 
       | pg. 17
       | 
       | > Starting in 2007, the Sacklers anticipated that the effects of
       | litigation against Purdue would eventually impact them directly.
       | See, e.g., Deferred Joint App'x at 5059 (David Sackler emailed
       | Jonathan and Richard Sackler, "We will be sued . . . . [A]sk
       | yourself how long it will take these lawyers to figure out that
       | we might settle with them if they can freeze our assets and
       | threaten us."). From 2008 to 2016, Purdue distributed a
       | significant proportion of the company's revenue--an approximated
       | $11 billion in total--to Sackler family trusts and holding
       | companies. This represented an increase in the distribution
       | pattern from years prior and "drained Purdue's total assets by
       | 75% and Purdue's 'solvency cushion' by 82%" during that same time
       | period.
       | 
       | pg. 25
       | 
       | > In applying the Iridium factors, the bankruptcy court observed
       | that, in this case, counsel on both sides were experienced and
       | formidable. Id. at 86-87. Over 95% of the voters approved the
       | Plan, showing clear creditor support, and the potential
       | difficulty in collecting from the Sacklers and their related
       | entities on any successfully litigated claims was an issue of
       | "significant concern." Id. at 89. The court noted that while the
       | Sacklers are worth approximately $11 billion, they are a large
       | family whose assets are "widely scattered and primarily held" in
       | spendthrift trusts--both offshore and in the United States--that
       | are largely unreachable via bankruptcy proceedings.9 Id. at 88.
       | Moreover, certain members of the Sackler family live "outside of
       | the territorial jurisdiction of the United States and might not
       | have subjected themselves sufficiently to the U.S." such that a
       | U.S. court would have personal jurisdiction over them. Id. And,
       | perhaps most importantly, according to the court, continued
       | litigation--even if it were limited to the claims at issue--would
       | be extremely expensive and lead to delays. Id. at 89- 90. Thus,
       | the court reasoned, an order against confirmation would not only
       | destroy the entire settlement but would also result in a major
       | escalation of costs and time.
       | 
       | The argument the bankruptcy court made - and which this decision
       | upholds - appears to boil down to "they've been so successful at
       | squirreling away the $11bn they took out of the company that we
       | probably can't get it back, so we shouldn't try; letting them get
       | away with it yields more for creditors".
       | 
       | Yikes. I guess this makes it legal to do the following:
       | 
       | - Start a company, do something really bad, and make a lot of
       | money. - Before you get sued, take the money out and hide it in
       | offshore accounts. - Get sued, declare bankruptcy, and return a
       | small fraction of the money as "goodwill" in exchange for a
       | release of claims.
       | 
       | And, oh, have really good lawyers so that the court calls your
       | counsel "experienced and formidable", enough to make coming after
       | you too expensive to even consider.
        
         | bradleyjg wrote:
         | It's up to the elected branches to make that harder /
         | impossible to do. Courts apply the law that those branches put
         | in place.
         | 
         | A lot of misplaced anger here.
        
         | throwaway17_17 wrote:
         | This is not a new result, it is just the first time that a
         | Court of Appeals had to actually say it out loud. Also, the
         | point of bankruptcy is to yield the most possible value for the
         | creditors, it is an integral component of the balancing test
         | for confirmation of proposed settlement for resolution of the
         | proceedings. I'm not a fan of the outcome or the process, but
         | this is just a case of the law working as intended.
        
         | 1024core wrote:
         | > Moreover, certain members of the Sackler family live "outside
         | of the territorial jurisdiction of the United States and might
         | not have subjected themselves sufficiently to the U.S." such
         | that a U.S. court would have personal jurisdiction over them
         | 
         | Bin Laden lived outside US jurisdiction too, but that didn't
         | stop the US from going after him. The Sacklers have been
         | responsible for way more than the 3000 deaths that OBL caused.
         | 
         | > Thus, the court reasoned, an order against confirmation would
         | not only destroy the entire settlement but would also result in
         | a major escalation of costs and time.
         | 
         | Of course, these considerations don't come into effect when
         | it's a, say, a poor Black guy caught for shoplifting $50 worth
         | of goods; then it's "lets throw the book at him and lock him up
         | for a dozen years!", even though locking someone up can cost
         | upwards of $50K/year in places like California.
        
           | orangepurple wrote:
           | The difference between you, me, the poor black guy caught for
           | shoplifting $50 worth of goods, Bin Laden, and The Sacklers
           | is their connections to the Israeli ruling parties and
           | intelligence services. In turn, those services are affiliated
           | with AIPAC. AIPAC in turn heavily influences American
           | politics.
           | 
           | https://www.amazon.com/Israel-Lobby-U-S-Foreign-
           | Policy/dp/03...
           | 
           | Steven Rosen, the former AIPAC official, illustrates AIPAC's
           | power for the New Yorker's Jeffrey Goldberg by putting a
           | napkin in front of him and saying, "In twenty-four hours, we
           | could have the signatures of seventy senators on this
           | napkin." As Mearsheimer and Walt make clear, this is no idle
           | boast, and they go on to say, "As will become clear, when
           | issues relating to Israel come to the fore, Congress almost
           | always votes to endorse the lobby's positions, usually in
           | overwhelming numbers".
           | 
           | They note AIPAC President Howard Friedman telling the
           | organization's members in August 2006, "AIPAC meets with
           | every candidate running for Congress. These candidates
           | receive in depth briefings to help them completely understand
           | the complexities of Israel's predicament and that of the
           | Middle East as a whole. We ask each candidate to author a
           | "position paper" on their views of the U.S.-Israel
           | relationship - so it is clear where they stand on the
           | subject."
           | 
           | One congressional candidate (Harry Lonsdale) who went through
           | this vetting process recounts that, "I found myself invited
           | to AIPAC in Washington, D.C. fairly early in the campaign,
           | for "discussions". It was an experience I will never forget.
           | It wasn't enough that I was pro-Israel. I was given a list of
           | vital topics and quizzed (read grilled) for my specific
           | opinion on each. Actually I was told what my opinion must be,
           | and exactly what words I was to use to express those opinions
           | in public..... Shortly after that encounter at AIPAC, I was
           | sent a list of American supporters of Israel..... that I was
           | free to call for campaign contributions. I called, they gave,
           | from Florida to Alaska."
           | 
           | AIPAC also keeps track of congressional voting records and
           | direct funds to opponents of congressmen who don't follow
           | their line.
           | 
           | Apart from Congress, Mearsheimer and Walt show successful
           | Jewish activists in key government positions (particularly
           | from the 1970's onwards), such as Paul Wolfowitz, Richard
           | Perle, Douglas Feith, Elliott Abrahams, David Wurmser and
           | Lewis "Scooter" Libby in the Clinton and Bush
           | administrations. This political combination managed to steer
           | George Bush, sideline Condoleeza Rice, and bully Colin Powell
           | into the Iraq war . The authors show the enormous frustration
           | of the CIA as their intelligence was distorted to support the
           | lie of Iraqi WMD and start an unprovoked war that was not in
           | the interests of the United States.
           | 
           | A feeble Congress votes record aid budgets to Israel
           | (currently four billion dollars a year), with loans being
           | converted to grants, and quick acquiescences to Israeli
           | demands that aid be paid up front (which means the U.S. has
           | to borrow it to give to them), and to the Israeli refusal to
           | account for how it was spent, both necessary conditions for
           | other aid recipients.
           | 
           | The whole process is supported by Jewish Think Tank activists
           | such as Daniel Pipes, Michael Rubin, and Joshua Muravchik at
           | the American Enterprise Institute, and prominent journalists
           | such as William Kristol, Michael Ladeen and Norman Podhoretz
           | who are now agitating for America to declare war on Iran (and
           | subsequently Syria and Saudi Arabia although they are not so
           | open about this).
           | 
           | In their conclusion, Mearsheimer and Walt ask what can be
           | done about the outlandish failure of the American government
           | to act in the interests of America. They doubt that the
           | Israel Lobby will relinquish its power in the press, campaign
           | finance or government, so they suggest pressure for more open
           | discourse, which seems to be happening. It was initially
           | impossible to publish this book in America but it did
           | eventually see the light of day after an article in the
           | London Review of Books and an unprcedented 275.000 downloads
           | of the working paper on Harvard's Kennedy School of
           | Government website.
           | 
           | The authors see the (remote) possibility of congressmen
           | treating Israel like any other country and they also show
           | that the majority of American Jews aren't Likudniks and
           | opposed the war in Iraq. They didn't like the AIPAC /
           | Wolfowitz group but of course they lost out to the activists,
           | so its not clear where all this goes, apart from generating
           | some rumbling at the other end of the spectrum (for example,
           | Robert Griffin's, "The Fame of a Dead Man's Deeds" ). At
           | present, Israel is greatly favoured while congress directs
           | America to carry the massive cost of her wars in addition to
           | generous transfers of aid.
        
             | boeingUH60 wrote:
             | This sounds like conspiracy drivel. AIPAC is an influential
             | lobby like many other lobbies focused on different issues.
             | Making it look like like a villain controlling congressmen
             | as puppets is delusional..
        
               | NoRelToEmber wrote:
               | Given that White House staff [0] is 32% Jewish (2.4% of
               | US) and only 24% non-Jewish white (55% of US) [1], the
               | allegations raised by that post seem very plausible.
               | 
               | [0] Roles such as policy advisors, director of
               | congressional outreach, director of labor engagement,
               | etc., not security or housekeeping.
               | 
               | [1] https://news.ycombinator.com/item?id=36119693
        
       | sitkack wrote:
       | How does a legal shield from creditors also apply when you commit
       | a crime? Or are crimes just financial debts?
        
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