A recent decision rejecting Johnson & Johnson’s controversial bankruptcy filing has done more than give hope to those sickened by the company’s talc: it has also inspired a mesothelioma victim to take action against a similar maneuver by Georgia-Pacific. Years after Georgia-Pacific created Bestwall in a “nearly identical” move, Wilson Buckingham has asked the court to dismiss the subsidiary’s bankruptcy filing.
Company’s Bankruptcy Strategy Prevented Mesothelioma Victims from Seeking Compensation
Mr. Buckingham was diagnosed with malignant mesothelioma in 2020. He joined thousands of others in filing lawsuits against Georgia-Pacific, accusing the company of negligence in having exposed them to asbestos. But all of their personal injury claims were stalled by Georgia-Pacific having moved its asbestos liabilities into Bestwall, a subsidiary that they created in 2017 and for which they immediately filed for bankruptcy protection.
This maneuver is known as a “Texas two-step,” and is the same strategy that Johnson & Johnson used in setting up and seeking bankruptcy for LTL Management to avoid compensating mesothelioma and ovarian cancer victims for sicknesses caused by its talc. The U.S. Third Circuit Court of Appeals recently rejected that move, agreeing with victims that LTL had shown no signs of financial distress at the time of the filing and that the move was intended to forestall liability to victims.
Mesothelioma Victims Revisit Georgia-Pacific Bankruptcy Proceeding
Mr. Buckingham’s legal action is not the first time that mesothelioma victims have argued against Georgia-Pacific’s bankruptcy maneuver. Plaintiffs attempted unsuccessfully to have the Bestwall bankruptcy dismissed in 2019, but are hoping that the recent ruling by the Third Circuit will lead the North Carolina courts overseeing the Bestwall case to look at the filing with “fresh eyes.”
In their plea to the bankruptcy court, mesothelioma victims note that nothing has been done to compensate asbestos victims in the past five years, despite assurances from the company. They also point out that Georgia-Pacific paid almost $2.5 billion in dividends to its parent company last year, giving rise to questions about the company’s assertion of “financial distress.”
If you or someone you love has been sickened by exposure to asbestos, the Patient Advocates at Mesothelioma.net are here to help. Contact us today at 1-800-692-8608 to learn more.
