The Senate Judiciary Committee held a hearing yesterday titled "Evading Accountability: Corporate Manipulation of Chapter 11 Bankruptcy." Witnesses included Prof. Melissa B. Jacoby of UNC School of Law (Chapel Hill, N.C.), Lori Knapp (Greeneville, Tenn.), Prof. Samir D. Parikh of Lewis & Clark Law School (Portland, Ore.), Stephen Hessler of Sidley Austin LLP (New York) and Erik Haas of Johnson & Johnson (Armonk, N.Y.). Numerous members of the committee pressed Haas on J&J's use of the "Texas Two-Step" strategy when it funneled approximately 40,000 lawsuits into its newly created subsidiary, LTL Management LLC, and filed for bankruptcy. To view a replay of the hearing and to read prepared witness statements, please click here.
