Stopping Corporate Bankruptcy Abuse: Protecting Victims of Mass Injury Claims.
This law makes it harder for large corporations to use Chapter 11 bankruptcy to shield themselves and related companies from liability, especially concerning mass injury claims (like product defects or environmental damage). It introduces rules allowing victims to continue lawsuits against non-bankrupt affiliated entities if the corporation recently underwent restructuring. This aims to ensure that citizens affected by corporate actions have a better chance of receiving full compensation.
Key points
Limits the ability of companies to file for bankruptcy in bad faith or solely to gain a tactical advantage in litigation.
Allows victims of mass harm (affecting 100 or more individuals) to continue lawsuits against related, non-bankrupt entities following recent corporate restructuring.
Sets a strict 24-month deadline for corporations to complete their reorganization plan under Chapter 11 bankruptcy.
Status:
Expired
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