ATTORNEY GENERAL BONTA TO U.S. SUPREME COURT: THE TEXAS TWO-STEP ALLOWS CORPORATIONS TO EVADE ACCOUNTABILITY, SIDESTEP FINANCIAL LIABILITY. THIS IS WRONG.

SACRAMENTO, Calif., Oct. 23 -- The California Attorney General issued the following press release:

OAKLAND - California Attorney General Rob Bonta today joined a bipartisan coalition of 21 attorneys general in filing an amicus brief (https://oag.ca.gov/system/files/attachments/press-docs/26-394amicus-briefpdfa.pdf) urging the U.S. Supreme Court to review a lower court's decision permitting a profitable corporation to exploit bankruptcy and Texas state law to evade mass-tort liabilities. This controversial legal maneuver, referred to as the "Texas Two-Step," allows solvent companies facing massive financial liabilities to create a shell entity under Texas corporate law, saddle the new entity with those liabilities, while leaving all the ass...