Sen. Elizabeth Warren (D-Mass.) has asked the Justice Department’s bankruptcy watchdog to join forces with the tort claimants committee in its appeal to throw out prison healthcare provider Tehum Care Services’ chapter 11 case, WSJ Pro Bankruptcy reported. Warren on Wednesday sent a letter to Tara Twomey, director of the Executive Office for U.S. Trustees, and Kevin Epstein, U.S. Trustee for the Southern and Western District of Texas. In that letter, Warren said the committee, in its motion to dismiss, argued persuasively that the case is a “bad-faith attempt to defraud creditors, many of whom faced serious injury or death” under Corizon Health. Corizon split into two in 2022 — Tehum and operating business YesCare — using a controversial legal tactic known as the Texas Two-Step. Tehum filed for chapter 11 in February last year, carrying into bankruptcy court debts and liabilities to prisoners, healthcare providers, insurance companies and others accumulated by Corizon. YesCare, among the nation’s largest providers of healthcare in prisons and jails, operates business as usual, while malpractice lawsuits filed against Corizon by former and current inmates were paused because of Tehum’s bankruptcy.
