Unveiling the Texas Two-Step: A Controversial Legal Tactic Used by Major Corporations to Handle Lawsuits
Austin, Texas — A legal maneuver known as the “Texas Two-Step” has recently come under scrutiny for its role in helping major corporations like Johnson & Johnson and Georgia-Pacific manage their mass tort liabilities through strategic bankruptcy filings. Crafted by the law firm Jones Day, this technique splits a company into two separate entities under Texan law. One of these entities assumes all the mass tort liabilities and then files for bankruptcy, potentially streamlining numerous lawsuits while shielding the parent company’s main assets and operations from related legal claims. This approach allows the financially healthier … Read more