J&J Attempts a “Texas Two-Step”

Motley Fool Money

The Motley Fool

Business, Investing

4.4 • 3K Ratings

🗓️ 5 April 2023

⏱️ 28 minutes

🔗️ Recording | iTunes | RSS

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Summary

Johnson & Johnson proposes a $9 billion settlement and Chewy hits a speedbump.
(00:21) Dylan Lewis and Tim Beyers discuss:
- The fallout from Johnson & Johnson's talc settlement.
- What the lawsuit could mean for J&J's spinoffs.
- Why the US Department of Justice is taking a look at Activision Blizzard.
(14:55) Ricky Mulvey and Emily Flippen take a closer look at Chewy's growth initiatives, and what they could mean for shareholders.
Companies discussed: JNJ, ATVI, CHWY
Host: Dylan Lewis
Guests: Tim Beyers, Emily Flippen
Producer: Ricky Mulvey
Engineer: Dan Boyd

Transcript

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0:00.0	Today we learn the Texas Two Step.
0:07.7	Motley Fool Money starts now.
0:11.6	I'm Dylan Lewis sitting in for Chris Hill and I'm joined by Tim Byers, Tim, scale
0:25.8	caffeinated to very caffeinated.
0:27.8	How are we doing today?
0:28.8	We're fully caffeinated Dylan, ready to go.
0:31.6	Let's do it.
0:32.6	I'm excited that you're fully caffeinated because we are going into the often obtuse world
0:37.0	of corporate settlements.
0:39.0	We have a couple pieces of news related to that and I thought, be interesting to dive
0:43.7	into it.
0:45.1	The first is Johnson and Johnson is proposing a $9 billion settlement to thousands who
0:50.6	sued the company claiming its talc products caused cancer.
0:55.2	And if this deal is approved, it would be one of the largest consumer liability settlements
1:00.8	of all time.
1:02.6	Notably, it is a sizeable jump from the $2 billion that the company had previously booked
1:08.0	related to those claims in 2021.
1:11.2	And Tim, as I see it, that seems quite intentional.
1:15.4	It looks like Johnson and Johnson is trying to do a little bit of a maneuver here and if
1:20.3	you pay attention to the bankruptcy world and the corporate bankruptcy world, you'll
1:24.2	know it is the Texas two-step looking to use bankruptcy law to transfer this talc case
1:30.8	liability to a subsidiary which would then file for bankruptcy and disperse money to
	...

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