That’s not what they did tho. They did this instead … and lowers 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.
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 lowers courts said no.
source here
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.
They don’t have enough cash on hand, so they bankrupt part of the company and sell.
Everyone should read the article.