A bipartisan group of lawmakers is renewing efforts to challenge the “Texas Two-Step,” a legal strategy that allows companies to shield themselves from mass tort liabilities, such as those linked to asbestos, talc, and ovarian cancer claims. This maneuver involves moving assets into one entity and liabilities into another, which then files for bankruptcy, halting ongoing lawsuits and protecting the company from financial responsibility.
The newly reintroduced legislation aims to make it easier for courts to reject such filings, declaring them bad faith actions. It also proposes removing the legal protections for related entities, enabling lawsuits to proceed against the non-bankrupt arms of these companies.
“The Texas Two-Step has allowed large companies to dodge accountability, prolonging the suffering of victims. This bill is a critical step forward in leveling the playing field for those impacted by asbestos exposure and other harmful products.”
This proposed legislation, if passed, could significantly impact mass tort litigation, particularly in cases involving asbestos and talc-related illnesses. By reducing the ability of companies to use bankruptcy as a tool to evade liability, it would pave the way for more victims to receive justice and compensation.
For a deeper dive into this issue, you can read the full article from Bloomberg Law here.
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Our firm is committed to ensuring that victims of asbestos exposure, talc-related illnesses, and mass torts have access to the justice and compensation they deserve. Our attorneys handle complex bankruptcy issues and legal claims, standing up against corporate strategies that aim to shield companies from responsibility.
If you or a loved one has been affected by asbestos exposure, other harmful products, or corporate negligence, contact The Lanier Law Firm today for a free case evaluation. We are here to fight for your rights and secure the compensation you deserve.