MONEY BEGETS FAVORABLE RULINGS
Appeals court declines to dance the “Texas two-step.” That’s not a new TikTok craze: It’s a corporate maneuver under Texas law whereby a company facing major liabilities spins off a new company to take them on, has the new company file for bankruptcy, and walks away unburdened—and yesterday, a federal appeals court refused to let Johnson & Johnson do it.
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J&J created a new unit to shoulder ~38,000 lawsuits claiming its talc-based products caused cancer, and the court’s ruling dismissed that unit’s bankruptcy case. J&J, which maintains that its products are safe, said it would seek to have the ruling overturned.
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@Madken65
Because of course they would.
Corporate greed in practice.
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