What a crock of shit. Johnson & Johnson netted $17 billion USD in 2022, so it’s not like they can’t afford to pay any settlements. They just don’t want to. In the last 5 years they netted 84 billion dollars, and that is all profit. Yeah, fuck you, J&J
Isn’t that the point of limited liability corporations? To move profits into private pockets while keeping liabilities in the corporation?
That’s not what they did tho. They did this instead … and lower courts said no.
J&J is among four major companies that have filed so-called Texas two-step bankruptcies to avoid potentially massive lawsuit exposure. The tactic involves creating a subsidiary to absorb the liabilities and to immediately file for Chapter 11.
Look up MNK/Mallinkrodt aka SpecGX. Just filed for bankruptcy right after emerging from bankruptcy in order to shed the original agreement of future products in lieu of fines or some such shit. Opioid manufacturer double bankruptcy.
The bankruptcy is a plan in place with counsel representing claimants so they can free up cash reserves and pay them.
Notably, our appeal recently was joined by counsel representing the vast majority of the talc claimants," he said.
They don’t have enough cash on hand, so they bankrupt part of the company and sell.
Everyone should read the article.
Considering that the settlements could be upwards of 750 billion, maybe they’re just pre-declaring.
I don’t really trust this website, they seem to be pushing you towards their paid services rather than providing useful news.
In any case, my understanding is that this is pretty old news. Also, it’s not J&J filing for bankruptcy, but a spin-off subsiduary that they created after the fact and have given all the IP rights to. They’ve lost every step of the way so far because what they’re trying to do is so transparent, they’re trying to shirk liability when at the time it was all theirs and theirs alone.
Johnson and Johnson is evil. The company shall fail. The market has spoken. Accept the punishment for your crimes Johnson & Johnson.
IANAL but I believe there is significant legal precedent against this. Most notably the recent order preventing Purdue Pharma, and the Sackler family from that very protection.
I wonder what Jamie would have to say about this. He should make a sequel, it’s been 20 years.
the CEO and the Board negotiate with the Supreme Court for their Golden Parachutes
But… but… but… bad science.
(At least according to a lot of suspiciously popular redditors anyways)
I’m reminded of that FamGuy scene.
That aged well.
