Senators Seek SCOTUS Review of ‘Texas Two-Step': Texas Brief

‘Texas Two-Step’ Prompts Calls for Review

In 2017, Georgia-Pacific attempted the first use of the controversial Texas Two-Step legal maneuver: The company used a Texas law to split off its liabilities into a subsidiary, which then filed for bankruptcy to resolve allegations that its products contained cancer-causing asbestos.

Now, three US senators are urging the Supreme Court to review that bankruptcy filing, saying it’s a misuse of bankruptcy law that allows the company to sidestep its liabilities, Randi Love exclusively reports.

In a court filing, Dick Durbin, Sheldon Whitehouse, and Josh Hawley wrote that the maneuver ...