rankor572 t1_j6j5wtb wrote on January 30, 2023 at 6:34 PM

Is this the "Texas Two-Step"? I'm versed enough in bankruptcy law to have heard the term, but not enough to know what it is.

L_Cranston_Shadow OP t1_j6j6g8m wrote on January 30, 2023 at 6:37 PM

I believe it is, but the appeals court tripped them.

[deleted] t1_j6kalk2 wrote on January 30, 2023 at 10:48 PM

[deleted]

[deleted] t1_j6klfp4 wrote on January 31, 2023 at 12:02 AM

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tmoney144 t1_j6kc0r8 wrote on January 30, 2023 at 10:57 PM

I found this to be helpful: https://www.wbur.org/onpoint/2022/10/20/the-texas-two-step-a-new-bankruptcy-strategy-to-avoid-corporate-liability

It even includes a quote from the Texas attorney who helped draft the statute being used here.

theUmo t1_j6mgydj wrote on January 31, 2023 at 11:12 AM

The Wikipedia page is interesting.

The Texas Two-step has only been used 4 times. The first three times were to shed liability for asbestos damage, and J&J is the last one.

All four companies were represented by law firm Jones Day, who represented Trump in lawsuits seeking to stop votes from being counted in the 2020 election.