Looking at mass torts trends, 2023 was the year of the bankruptcy.
Large corporations facing significant mass tort liabilities like Johnson & Johnson and 3M tried unsuccessfully to resolve their liabilities using the “Texas Two-Step.” For the uninitiated, the Texas Two-Step is a bankruptcy process in which a solvent corporation spins off certain liabilities into a new and undercapitalized subsidiary and then has the subsidiary declare bankruptcy. The corporation’s goal is for mass tort claimants to pursue their claims against the bankrupt subsidiary instead of the solvent parent….
