What a crock of shit. Johnson & Johnson netted $17 billion USD in 2022, so it’s not like they can’t afford to pay any settlements. They just don’t want to. In the last 5 years they netted 84 billion dollars, and that is all profit. Yeah, fuck you, J&J
Isn’t that the point of limited liability corporations? To move profits into private pockets while keeping liabilities in the corporation?
That’s not what they did tho. They did this instead … and lower courts said no.
J&J is among four major companies that have filed so-called Texas two-step bankruptcies to avoid potentially massive lawsuit exposure. The tactic involves creating a subsidiary to absorb the liabilities and to immediately file for Chapter 11.
Look up MNK/Mallinkrodt aka SpecGX. Just filed for bankruptcy right after emerging from bankruptcy in order to shed the original agreement of future products in lieu of fines or some such shit. Opioid manufacturer double bankruptcy.
The bankruptcy is a plan in place with counsel representing claimants so they can free up cash reserves and pay them.
Notably, our appeal recently was joined by counsel representing the vast majority of the talc claimants," he said.
They don’t have enough cash on hand, so they bankrupt part of the company and sell.
Everyone should read the article.
Considering that the settlements could be upwards of 750 billion, maybe they’re just pre-declaring.
I don’t really trust this website, they seem to be pushing you towards their paid services rather than providing useful news.
In any case, my understanding is that this is pretty old news. Also, it’s not J&J filing for bankruptcy, but a spin-off subsiduary that they created after the fact and have given all the IP rights to. They’ve lost every step of the way so far because what they’re trying to do is so transparent, they’re trying to shirk liability when at the time it was all theirs and theirs alone.
Also, it’s not J&J filing for bankruptcy, but a spin-off subsiduary that they created after the fact and have given all the IP rights to.
General Motors tried this same garbage tactic to get out of paying for their liability with mercury switches. General Motors declared bankruptcy, then created a NEW company called…General Motors. They transferred all the assets from old GM to new GM, and left all the liabilities with old GM. It took years, but a number of states sued and got a settlement.
I wish they hadn’t settled on these matters. Sometimes things need to be brought to court - and when the state is involved there’s less of an excuse not to.
IANAL but I believe there is significant legal precedent against this. Most notably the recent order preventing Purdue Pharma, and the Sackler family from that very protection.
There’s gotta be a better way to rephrase that and end up with a different abbreviation than “I ANAL.” 😂
Does I Literally, Obviously, Vociferously, Emphatically Am Not A Lawyer work better?
ILOVEANAL has a certain catchy thrust to it, yes.
Just slides right into place with little resistance.
Just the tip.
You’d think so, but that’s been a standard abbreviation around the Internet for at least 5 years.
INAL would be less ANALy, I’m Not A Lawyer but I love IANAL because I have to stop and think about butts.
Closer to 15
it’s a lot older than that. dates back to usenet, so three decades at least.
Let’s be honest: ever met a non-anal lawyer?
Purdue mostly got away with what they did though. Half a million dead and just a relative slap on the wrist by comparison.
Johnson and Johnson is evil. The company shall fail. The market has spoken. Accept the punishment for your crimes Johnson & Johnson.
I wonder what Jamie would have to say about this. He should make a sequel, it’s been 20 years.
the CEO and the Board negotiate with the Supreme Court for their Golden Parachutes
But companies are people! We must protect the people! /s
Ill believe corporations are people when Texas executes one.
As a Canadian I have never understood how your SCOTUS ruled that corps have the same rights as people. It makes no logical sense whatsoever.
I mean people survived millennia without corps, but corps wouldn’t survive one day without people. Ergo we are top of the pecking order here … or should be anyway.
A little baby powder will protect them.
My question is, when this shit passed, why did no one tell those fucks, “ok you’re people too, which means the laws that pertain to a person are now applicable to whatever CEO and board members approved decisions that broke those laws.” As it is right now, those fuckers get their cake and eat it too and it infuriates me to no end.
But… but… but… bad science.
(At least according to a lot of suspiciously popular redditors anyways)
I’m reminded of that FamGuy scene.
