Warren Nudges DOJ Toward Dismissal of Prison Health Bankruptcy

Sen. Elizabeth Warren (D-Mass.) told the Justice Department’s bankruptcy watchdog it should consider moving to dismiss a prison health-care company’s attempt to use bankruptcy to settle liability.

Warren on Wednesday asked the US Trustee, an arm of the Justice Department, to consider joining a motion to dismiss made by tort claimants in Tehum Care Services Inc.'s Chapter 11 case. Tort claimants earlier this month moved to dismiss Tehum’s bankruptcy so they can sue its affiliates, providing them a path to recover more money than they say they would receive through bankruptcy.

“The U.S. Trustee should carefully consider the merits of ...