Re: Didn’t J&J then immediately split into two companies, …
putting all their assets into one, and the $2.1 billion liability into another so that it could then declare bankruptcy and never pay anything?
It used a feature of Texas law called a “divisive merger” to form an entity to hold the liability, but J&J also established a 2 G$ trust for (and diverted 350 M$ of royalties to) the entity to pay off the liability as part of the entity’s bankruptcy proceedings. That action was doubtlessly taken to limit J&J’s liability to other talcum powder/ovarian cancer lawsuits.
Biting the hand that feeds IT
