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The companies can also try to do creative things through bankruptcy courts to avoid any negative consequences, like Johnson & Johnson is doing right now: > J&J
by smnrchrds 5y ago
The companies can also try to do creative things through bankruptcy courts to avoid any negative consequences, like Johnson & Johnson is doing right now:
> J&J, which also makes products such as Tylenol and Band-Aid, assigned legal liability for the complaints to the spinoff company, which immediately filed for bankruptcy — a maneuver dubbed the "Texas two-step."
https://www.npr.org/2022/02/25/1083061992/johnson-johnson-wins-court-battle-bankruptcy-baby-powder https://www.npr.org/2022/02/25/1083061992/johnson-johnson-wi...
- mindslight 5y agoFWIW this is the exact kind of thing that the plebs are told that bankruptcy courts will see right through - as an individual you have to be very worried about "piecing the corporate veil" of an LLC or corporation, to the extent that setting up an LLC doesn't actually make sense for many business activities. Yet a large company can pay enough lawyers and buy a corrupt Texas law to openly abuse the dynamic with impunity. It's bad enough that large entities can set up such fine-grained liability shields a priori while common individuals effectively cannot, but allowing them to be created a posteri is a slap in the face.