AAJ Statement Praising Bipartisan Legislation to Deter ‘Texas Two-Step’ Bankruptcy Trick

Washington, D.C. — Today, American Association for Justice’s CEO Linda Lipsen issued the following statement praising the introduction of the Ending Corporate Bankruptcy Abuse Act (ECBA) by U.S. Senators Sheldon Whitehouse (D-RI), Dick Durbin (D-IL) and Josh Hawley (R-MO) and Representatives Emilia Sykes (D-OH), Jerry Nadler (D-NY) and Lance Gooden (R-TX). This new, bipartisan legislation would stop corporations from using a little-known bankruptcy maneuver known as the "Texas Two-Step" to evade legal accountability when they hurt or kill people.
"Profitable corporations are filing sham bankruptcies to evade accountability to the Americans they’ve hurt using a legal tactic known as the ‘Texas Two-Step,’" said American Association for Justice CEO Linda Lipsen.  "These mega-corporations manipulate the legal system to dodge responsibility for inflicting widespread harm.  I applaud Senators Whitehouse, Durbin, Hawley, and Representatives Sykes, Gooden, and Nadler for championing this legislation to reign in this abuse of corporate power."
 
The text of the bill can be found  here , and a one-page summary can be found  here .
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The  American Association for Justice  works to safeguard rights, promote fairness, and strengthen access to civil justice—even when it means taking on the most powerful corporations.
AAJ’s vision is justice for all.

CONTACT Heather K. Sager Email: Heather.Sager@justice.org Phone: (202) 579-1205