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> Badco also got a funding agreement with Goodco, which gives Badco the right to be reimbursed by Goodco for any expenses incurred as a result of the talc liabi
by BoiledCabbage 4y ago
> Badco also got a funding agreement with Goodco, which gives Badco the right to be reimbursed by Goodco for any expenses incurred as a result of the talc liabilities, up to ~60 billion
From what I can tell from the source documents this is either a misreading or misleading.
Yes Badco can ask Goodco for up to $60B, however that is too cover administrative expenses and payments. However, payments will come from a trust fund decided with Badco in bankruptcy. From what I'm finding online, J&J has proposed to cap that trust fund at $2.5B. Meaning effectively they are trying to decide the max amount they will be held liable for across all cases.
So apparently not $60B, if I'm reading that correctly.
- scott00 4y agoYou are correct that if Badco completes the bankruptcy process the payments will come from a trust fund. But J&J doesn't control how much money goes into that trust fund. The 2.5B is their opening bid but it will ultimately be determined by a judge or jury.