Michael Zimmerman of Berry Riddell Appointed Trustee of Tehum Personal Injury Settlement Trust Following Landmark Chapter 11 Confirmation

April 9, 2025 Phoenix, AZ – In a recent ruling, U.S. Bankruptcy Judge Christopher López confirmed the Chapter 11 bankruptcy plan for Tehum Care Services, Inc., a nationwide provider of correctional healthcare services. This marks the first-ever confirmed Chapter 11 plan in a “Texas Two Step” divisional merger case.

Michael Zimmerman of Berry Riddell LLC was selected as lead counsel for the Official Committee of Tort Claimants (TCC) in November 2023. Zimmerman worked alongside co-lead counsel, Eric Goodman, from Brown Rudnick LLP throughout the case. The TCC played the pivotal role in ensuring the rights of tort claimants were upheld, successfully opposing an earlier proposed settlement that would have limited victims’ ability to seek redress through the civil justice system. The TCC’s litigation efforts in this case increased the tort claimants’ recovery by more than 300% than the settlement previously proposed in this case.

Michael Zimmerman and his co-counsel played a crucial role in negotiating the settlement and developing and confirming the plan, which resulted in the appointment of Zimmerman as Trustee of the Tehum Personal Injury Settlement Trust. The trust will administer and distribute payments to victims’ allowed claims under the confirmed Chapter 11 plan.

The settlement reflected in the confirmed Chapter 11 plan requires a $50 million cash payment to be made over thirty months by the settling parties, plus the assignment of contingent assets like tax credits and other claims that increase the total settlement value to more than $75 million. Half of the settlement assets will fund the trust being administered by Zimmerman.

 “The result of the TCC’s commitment to doing the right thing coupled with a fantastic litigation team is a truly unique Chapter 11 plan that empowered victims to choose settlement or opt-out to pursue their claims in the civil justice system,” said Zimmerman. “Commercial creditors fared better under our plan too. This is a great result.”

Michael Zimmerman’s appointment as Trustee of the Tehum Personal Injury Settlement Trust is a testament to his bankruptcy and litigation expertise and his leadership qualities. As Trustee, Zimmerman will oversee the distribution of funds to claimants in accordance with the confirmed plan.

“This case represents a significant achievement in ensuring justice for the victims,” said Zimmerman. “I am honored to serve as Trustee and to play a role in ensuring that the settlement achieves its intended purpose.”

The case, In re Tehum Care Services, Inc., was recognized as a landmark bankruptcy case and was covered by The Wall Street Journal, Reuters, Bloomberg Law, and Law360.