Court Rejects Johnson & Johnson’s Controversial Bankruptcy Strategy in Texas Again
New York — In a substantial blow to Johnson & Johnson’s strategic legal defenses, an appeals court has once more turned down the healthcare giant’s controversial ‘Texas two-step’ bankruptcy ploy. This financial maneuver, which has sparked public and legal controversy, was designed to compartmentalize potentially billions of dollars in liabilities linked to claims that its talcum powder products caused cancer. The U.S. Third Circuit Court of Appeals ruled that the subsidiary created for the sole purpose of filing for bankruptcy did not demonstrate the appropriate financial distress required to qualify for such protection. This decision … Read more