Since the summary stops just short of explaining what they're doing: They're creating an LLC (in Texas) that will assume liability for all the damages, but has no assets of its own and exists only to declare bankruptcy so as to avoid paying. It's a loophole that obviously was deliberately created to be used in exactly this way.
It's so funny because it is criminal activity for regular non-corporation people. Transferring assets to family/hiding assets for the purposes of declaring bankruptcy but not losing the assets is illegal. Functionally identical to what is going on here, except they're somehow transferring the liability instead of the assets.