Two Steps Behind: Surveying the Current Regulatory Landscape for Texas Two-Step Bankruptcies
When Johnson & Johnson faced liability lawsuits for more than 38,000 cases of ovarian cancer allegedly linked to its asbestos-contaminated baby powder products, they got creative. They filed a Texas Two-Step bankruptcy to protect their assets while managing mass tort liability. The strategy was an attempt to tip the scales of justice in their favor. It would have likewise leveled global settlements and dismissed individuals’ right to their “day in court,” if it had succeeded. This “Student Voices” post examines the Texas Two-Step bankruptcy practice and the access to justice issues it presents.











