Aldrich Pump Claimants Slam ‘Texas Two-Step’ in Dismissal Motion

Aldrich Pump’s bankruptcy—designed to resolve mesothelioma personal injury claims through a corporate strategy called the “Texas Two-Step"—is an abuse of the bankruptcy system, claimants said in a motion to dismiss.

“The Two-Step scheme is an affront to the civil justice system and the fundamental precepts of corporate restructuring and reorganization,” the claimants said in a motion filed Monday in the US Bankruptcy Court for the Western District of North Carolina.

The motion comes after the Third Circuit in January struck down an attempt by Johnson & Johnson to use a similar two-step maneuver. That’s when a company spins off an ...