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- Leading prison health provider Corizon Health split last year and filed one company, called Tehum, into bankruptcy
- Sources tell Insider the parties reached a tentative settlement of $30 million, a small fraction of the company’s debt
- That deal could leave hospitals and hundreds of prisoners who claim they were harmed by Corizon with tiny settlements
- Sen. Elizabeth Warren is now looking into Corizon’s use of a controversial legal maneuver called the Texas Two-Step
Corizon Health, once the nation’s largest prison healthcare provider, reached a tentative bankruptcy deal last week that could leave hundreds of prisoners with pennies on the dollar for their medical malpractice claims.
If the settlement is approved, it would mean that Corizon’s owners succeeded in their use of a controversial financial maneuver called the Texas Two-Step. In a recent civil complaint, Isaac Lefkowitz, a company representative, said the Two-Step is used to “force plaintiffs into accepting lower payments.”
Sen. Elizabeth Warren has called Corizon’s use of the Two-Step “an alarming red flag.”
According to two people close to the negotiations, the settlement figure