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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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Because of course they would.
Corporate greed in practice.
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😲 Looks like I’ve learned my new one thing for the day.
@Madken65 --This is somewhat similar when the NRA tried to file bankruptcy in Texas to get from under liabilities associated from litigation pending in federal court in NY. The court shut that down in a NY minute.
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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