Johnson and Jay and the Texas Two Step Case

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Earlier this year, a federal judge in New Jersey essentially said Johnson and Johnson can do this. Judge Michael Kaplan argued that the Bankruptcy courts were the best venue to handle these mass toward claims. If this case is thrown out, then I think companies will really think twice about going down the bankruptcy route.

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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