Thousands of asbestos lawsuits have stalled as three major corporations use the Texas Two-Step legal strategy in Charlotte’s bankruptcy court.
Ames Alexander reports for The Charlotte Observer.
In short:
- Georgia-Pacific, Trane, and CertainTeed have created subsidiaries to handle asbestos liabilities, allowing them to continue business operations without financial distress.
- These subsidiaries filed for bankruptcy in Charlotte, putting lawsuits on hold and preventing victims from seeking compensation.
- The Fourth Circuit Court of Appeals and potentially the U.S. Supreme Court will decide the legality of this maneuver.
Key quote:
“Everyone — shareholders, all other creditors, bankruptcy lawyers — is getting paid, except the sick people."
— Clay Thompson, one of the plaintiffs’ lawyers
Why this matters:
Thousands of asbestos victims and their families await justice and compensation, while profitable companies exploit legal loopholes to avoid accountability. The decision of higher courts could set a precedent impacting future corporate liability cases.
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