The Story of Money
Inside Johnson & Johnson’s bankruptcy two-step
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Show notes
Johnson & Johnson, one of the world’s largest healthcare companies, is facing thousands of lawsuits from people alleging they got cancer from using one of their oldest products: talc-based baby powder.
To manage the growing liability, J&J recently deployed a controversial new bankruptcy manoeuvre known as the Texas Two-Step.
In this week’s episode, we explore whether J&J’s use of this manoeuvre is setting a new precedent for corporations to evade accountability in America.
Update: A new version of this episode was uploaded on June 21, 2022 to update the number and outcome of trials 3M has faced related to one of its products.
Clip courtesy of NBC News
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For further reading:
Johnson & Johnson’s ‘Texas-two-step’ sparks outcry over US bankruptcy regime
Architects of ‘Texas two-step’ lambast J&J for its use of the manoeuvre
‘Texas two-step’ outcry risks ending fee bonanza for law firm Jones Day
J&J’s Texas two-step waltzes over its liabilities
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On Twitter, follow Jamie Smyth (@JamieSmythF) and Michela Tindera (@mtindera07)
Read a transcript of this episode on FT.com
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