FT News Briefing The jig is up for the Texas two-step
Feb 7, 2023
A landmark court ruling has shaken up corporate liability, specifically targeting the controversial Texas Two-Step strategy used by some companies to shield themselves from lawsuits. In Nigeria, over 11,000 residents are suing Shell for environmental damage caused by oil spills, highlighting the ongoing struggles in the Niger Delta. Meanwhile, Google's plan to launch its own AI chatbot, Bard, intensifies the race in tech innovation. The podcast dives into these pressing legal and technological issues reshaping industries.
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Digital Pound Development
- The UK Treasury and Bank of England are developing a digital pound, potentially replacing banknotes by the end of the decade.
- This e-currency aims to maintain the Bank of England's control over the UK's financial system.
J&J's Texas Two-Step
- Johnson & Johnson used the "Texas Two-Step" to avoid liability in talcum powder lawsuits.
- This maneuver involves creating a subsidiary, transferring liabilities, and declaring bankruptcy.
Texas Two-Step Repercussions
- The ruling against J&J's Texas Two-Step sets a precedent, discouraging similar tactics.
- Companies now face reputational damage and financial losses if they attempt this maneuver.