Mesothelioma Victim Takes Action to Reverse Georgia Pacific Bankruptcy Move
In recent years, asbestos companies have added insult to injury by trying to evade mesothelioma victims’ personal injury claims through a complex bankruptcy maneuver known as a “Texas Two-Step.” After a recent attempt by Johnson & Johnson was rejected by the U.S. Third Circuit Court of Appeals, a man who blames Georgia-Pacific for his asbestos-related illness is taking action to overturn that company’s 2017 bankruptcy filing.
Georgia-Pacific’s 2017 Bankruptcy Filing Meant to Evade Mesothelioma Claims
Wilson Buckingham was diagnosed with malignant mesothelioma in 2020, and filed suit against Georgia-Pacific for having exposed him to asbestos. But he quickly learned that in 2017 the company had moved its asbestos liabilities into a subsidiary called Bestwall, and that immediately afterward the newly formed company filed for bankruptcy protection. This legal maneuver is controversial, as it puts those seeking compensation from the company at a significant disadvantage.
Johnson & Johnson recently pursued the same “Texas Two-Step” strategy, forming LTL Management and then having it file for bankruptcy protection from the tens of thousands of asbestos claims filed by people diagnosed with mesothelioma and ovarian cancer after using its baby powder product. That move was initially approved by a bankruptcy judge, but then overturned by the higher court. In light of the asbestos plaintiffs’ victory in that case, Mr. Buckingham is attempting to have Georgia-Pacific’s maneuver overturned as well.
Court Sides with Mesothelioma Victims, Says “No Signs of Financial Distress”
In its decision, the U.S. Third Circuit Court of Appeals noted that though Johnson & Johnson’s maneuver indicated that subsidiary LTL needed bankruptcy protection, the newly-formed company showed “no signs of financial distress at the time of the filing.” While asbestos plaintiffs have previously attempted to have the Georgia-Pacific/Bestwall bankruptcy dismissed, Mr. Buckingham hopes to leverage the court’s LTL Management decision as he asks for reconsideration.
To support his argument, Mr. Buckingham intends to note that while Bestwall has assured the mesothelioma victims that they will see justice, nothing has been provided over the past five years, and that in just the last year, the allegedly “financially distressed” company paid nearly $2.5 billion in dividends to its parent company.
FREE Financial Compensation Packet
- Info on law firms that will recover your HIGHEST COMPENSATION
- Learn how to get paid in 90 days
- File for your share of $30 billion in trust funds
