ANALYSIS: Three Mass Tort Bankruptcy Maneuvers to Watch in 2023

Mass tort Chapter 11 bankruptcy cases have attracted considerable attention over the last few years. High-profile cases like LTL Management, Aearo Technologies, and Purdue Pharma have resulted in federal circuit level appeals that promise to shape the legal landscape for mass tort bankruptcy cases next year and beyond.

Through Chapter 11, companies faced with mass torts seek to centralize claims, obtain efficiency and finality, and avoid the unpredictability of trials. The debtor’s strategies often involve providing nondebtor third parties with some level of bankruptcy court protection. Three debtor strategies to watch in 2023 are the Texas Two-Step, extension ...