Bayer AG is considering employing the controversial legal tactic known as the Texas Two-Step bankruptcy to address the thousands of lawsuits alleging that its Roundup weedkiller causes cancer. The strategy, which involves splitting assets and liabilities into separate units, with the unit burdened by liabilities being placed into bankruptcy to facilitate a global settlement, is an area of expertise for Professor Ralph Brubaker. Speaking to Bloomberg, he suggested that although the courts may ultimately refuse this tactic, bankruptcy could provide Bayer with time to propose a settlement while halting ongoing litigation.
Read the full Bloomberg article online.