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this is different, the actual underlying asset is at stake for liabilities it causes. This is the whole point of corporations. The analogy would be if a landlo
by anm89 4y ago
this is different, the actual underlying asset is at stake for liabilities it causes. This is the whole point of corporations.
The analogy would be if a landlord created a shell company, and then only gave that company it's legal liabilities without any assets. That's what J&J did here and why this case is so obviously egregious.
If you could do that, it would be a get out of jail free card for all legal liability in all cases. It's essentially renouncing rule of law
- anm89 4y agoThe top comment on the whole thread explains that my above explanation is slightly off. For a better explanation see https://www.investopedia.com/texas-two-step-bankruptcy-definition-5225888 https://www.investopedia.com/texas-two-step-bankruptcy-defin...