Best Of: Inside Johnson & Johnson’s bankruptcy two-step
Behind the Money
Topher Forhecz
4.4 • 350 Ratings
🗓️ 31 May 2023
⏱️ 36 minutes
🧾️ Download transcript
Summary
This week, we’re revisiting an episode from last year. 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 deployed a controversial bankruptcy manoeuvre known as the Texas two-step. The FT’s US pharmaceutical correspondent Jamie Smyth helps us explore whether J&J’s use of this manoeuvre is setting a precedent for corporations to evade accountability in America. Plus, stick around for an update on what’s happened to the Texas two-step since this episode first aired.
Clip from NBC
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For further reading:
Johnson & Johnson’s ‘Texas-two-step’ sparks outcry over US bankruptcy regime
Talc ruling a blow to J&J and the ‘Texas two-step’ bankruptcy jig
Talcum powder cancer claims target J&J’s new consumer carve-out
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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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Transcript
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| 0:00.0 | Am I missing anything? Is this the right decision? |
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| 0:21.1 | facts, not opinions. |
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| 0:26.6 | Visit clarity. |
| 0:27.7 | AI and take action today. |
| 0:30.8 | Hey everyone. |
| 0:32.0 | Just to note that we're taking a break this week so instead today |
| 0:35.5 | we're resharing one of our episodes. Now be sure to stick around till the end. We'll |
| 0:41.3 | have an update on what's happened since this episode |
| 0:43.9 | first came out last June. So let's get on to the show. On May 5th, 2020, a couple named Val and Holly Johnson officially make a decision that has been |
| 0:57.3 | stewing for months. |
| 1:00.9 | They decide to file a lawsuit against one of the world's largest health care companies, Johnson and Johnson. |
| 1:09.0 | In their lawsuit, they say that Johnson and Johnson sold them talc-based baby powder that had asbestos in it, a known carcinogen. |
| 1:18.8 | They conspired. This was, this was not an accident that they did this. |
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