Using Bankruptcy to Handle Mass Torts

Bankruptcy is not only about liquidating businesses but also about using it as a tool to handle situations where a company's products have caused harm. This includes cases like Johnson & Johnson and Purdue Pharma where thousands of lawsuits have arisen due to product-related injuries. Companies are taking advantage of bankruptcy to create subsidiaries and distribute funds to settle these claims. While bankruptcy offers certain advantages such as fair distribution of awards and avoiding the unpredictability of mass tort outcomes, it also raises questions about justice and the potential for opportunism.