Johnson & Johnson's Response to the Texas Two-Step

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The Texas two-step is really the catchy name that lawyers in the media have come up with to describe what's a very complex and controversial bankruptcy maneuver. This is really at the center of J&J's response to the multi-billion dollar baby tell problem that it faces. The scheme gets its name from the use of a statute which was passed in Texas back in 1989. It originally intended to make the process of spinning off companies more efficient.

Thousands of people say Johnson & Johnson’s baby powder gave them cancer. They’re suing — but the consumer giant is using a bankruptcy strategy called the “Texas two-step” to limit its liability.

This episode was produced by Avishay Artsy, edited by Matt Collette, fact-checked by Laura Bullard, engineered by Paul Robert Mounsey, and hosted by Noel King.

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