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> And this is exactly what J&J want you to believe. Do you mean that they lied in their annual report about their profits and/or their current cash on hand? Or
by WJW 3y ago
> And this is exactly what J&J want you to believe.
Do you mean that they lied in their annual report about their profits and/or their current cash on hand? Or that the total legal costs will be much higher than the 9 billion settlement agreement?
Because I still don't see how a 9 billion settlement would bankrupt J&J, even if the subsidiary were to be reabsorbed into J&J tomorrow. They already set aside ~7 billion in Q1 2023 for this and have way deeper reserves available.
- jacquesm 3y agoThe settlement is limited to those cases that have been brought and they're trying to plug that hole with legal tricks. But so far the judge isn't buying it which means the parent company will be liable and if it is found to be liable after all you can count on many thousands more lawsuits. It will also remove the cap on settlements. You can expect J&J to take a massive hit on account of that, possibly more than the market will bear. Keep in mind during all of this that in order to fail as a commercial entity all that needs to happen is that you are momentarily out of cash. The vultures will swoop in right away to dismember the corpse looking for bargains.