'Texas Two-Step' Is Only Path to Talc Claim Payouts, J&J Litigation VP Tells Senate Panel

The U.S. Senate Judiciary Committee is looking to Johnson & Johnson’s failed divisive merger bankruptcy plan for insight on how to balance tort claimants’ rights with realistically resolving tens of thousands of claims.

During a hearing Tuesday morning, the committee heard from experts who disagreed on whether the Third Circuit’s concerns about the relatively new process known as the “Texas two-step” are overly cautious or if the Bankruptcy Code as-is gives corporations the option of choosing to funnel potential liability into Chapter 11 proceedings.

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