Inside Johnson & Johnson’s bankruptcy two-step
Behind the Money
Topher Forhecz
4.4 • 350 Ratings
🗓️ 21 June 2022
⏱️ 29 minutes
🧾️ Download transcript
Summary
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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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. |
| 0:28.0 | Aye and take action today. |
| 0:31.3 | On May 5th, 2020, a couple named Val and Holly Johnson officially make a decision that has been stewing for months. |
| 0:41.0 | They decide to file a lawsuit against one of the world's largest health |
| 0:46.6 | care companies, Johnson and Johnson. In their lawsuit, they say that Johnson and Johnson sold them talc-based baby powder that had |
| 0:57.0 | asbestos in it, a known carcinogen. |
| 1:00.5 | They conspired. |
| 1:01.5 | This was, this was not an accident that they did this. |
| 1:05.6 | That's Val. He's 61 years old and he and his wife Holly say that Val's use of |
| 1:12.4 | Johnson's baby powder led to his diagnosis of mesothelioma. |
| 1:17.6 | He found out that he had this rare and deadly form of cancer just months earlier. |
... |
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