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J&J and Talc
- Johnson & Johnson created a subsidiary for talcum powder lawsuits, filing it for bankruptcy.
- This subsidiary holds the claims and a proposed $9 billion settlement.
Bankruptcy for Lawsuits
- Companies use bankruptcy to handle lawsuits over harmful products.
- This shields the broader company while addressing claims.
Fairness vs. Justice
- Bankruptcy offers fairer compensation than mass torts, where outcomes vary widely.
- It streamlines claims, preventing gaming of the system, but bypasses jury trials.