The Texas Two-Step is a law allowing for the creation of a corporation that subsequently files for bankruptcy, thereby allowing product liability claims to move into bankruptcy court. J&J was the latest corporate filer until a federal judge said, not so fast.
As divisive as we are, I think we can all agree that our institutions and corporations are not held accountable for their actions. To my right are those concerned with the CDC, WHO, and social media censorship; to my left are those who want to hold the Bigs, tobacco, or food, and federal and state policy accountable. Governmental agencies are hard to pin down because the bureaucracy means everyone and no one is to be held responsible. Because they are legal “individuals,” corporations can have their feet held to the fire by lawsuits. But thanks to a rivalry between Delaware and Texas over who is the most “corporate friendly,” we have corporate’s “Get Out of Jail” free card – the Texas two-step.
The proposed Purdue bankruptcy plan has its champions and its detractors. Many bemoan usurping the victim’s rights to confront the bankruptcy debtor. Others see bankruptcy as a chance to provide some compensation to those injured in a rapid and streamlined fashion, guaranteeing recovery funds are available while allowing the concern to continue operating, providing an orderly resolution so that business might continue, preserving jobs and some revenue.