I am almost embarrassed to ask this question, but as a long time C programmer I feel that perhaps I am not aware of the best way to do this in C#.
I have a member fu
Your first suggestion isn't two lists. It's a list of lists.
The second option would do what you intend, but you might want to change it to use the out keyword instead of ref so the callers of your method will know the intention of what you're doing.
public void ReturnTwoLists(out List listOne, out List listTwo);