“Why would one of the most profitable companies in the world create a subsidiary only to declare it bankrupt? Not once, but three times since 2021. So I started to dig into it: The allegations, the documents hidden from the public, and the legal maneuvering. Something bigger emerged. Legal experts believe it’s the endgame of a decades-long strategy that could help J&J escape responsibility for thousands of cancer cases, while thousands of women are left fighting battles on two fronts, against the disease and against a justice system that is failing them.” Journalist called the fake subsidiary companies, has all the documents, the legal cases and evidence. This research is INSANE
WOAH 🚨 This needs to be National News
Johnson & Johnson is creating subsidiary companies and then letting them go bankrupt to escape liability and lawsuits from people getting cancer from their products
“Why would one of the most profitable companies in the world create a… pic.twitter.com/iJSlFUt7GM
— Wall Street Apes (@WallStreetApes) December 13, 2024
Johnson & Johnson (J&J) has employed a legal strategy known as the “Texas two-step” to manage extensive litigation related to claims that its talc-based products cause cancer. Key aspects of this approach include:
- Creation of Subsidiaries: J&J established subsidiaries, such as Red River Talc LLC and LTL Management LLC, to assume liability for talc-related claims. These entities were then placed into Chapter 11 bankruptcy to address current and future lawsuits. Janssen Pharmaceuticals
- Bankruptcy Filings: Red River Talc LLC filed for voluntary prepackaged Chapter 11 bankruptcy in September 2024, aiming to resolve ovarian cancer talc claims. This plan proposed an $8 billion settlement over 25 years and received support from approximately 83% of current claimants, exceeding the 75% threshold required for approval under U.S. bankruptcy law.
- Legal Challenges: The U.S. Department of Justice has challenged J&J’s use of this strategy, labeling it a “textbook example of bad faith.” Critics argue that financially robust companies like J&J should not exploit bankruptcy protections intended for those in genuine financial distress. Lawsuits
- Court Rulings: Previous attempts by J&J to use this strategy were dismissed by courts due to the company’s lack of financial distress. However, the latest filing by Red River Talc LLC has garnered significant claimant support, potentially influencing court decisions.
- Ongoing Litigation: Despite these bankruptcy filings, litigation continues. In August 2024, a South Carolina man was awarded $63.4 million in a mesothelioma case linked to J&J’s talc products. Drugwatch
- It’s time the people force these companies to just admit they were wrong and pay what they owe. Or go bankrupt the old fashion way when the people decide to quit using your products. And then buy your company for pennies.
- They used to be a trusted brand, now we realize we’ve been duped. This is so disheartening. The worst thing about these types of stories is that they knew all along but put profit over people’s health. Lovinlife
- The legal maneuvering is called the Texas two step. It’s a really crappy thing to do to people who have lost everything because their company lied and covered up evidence of potential harm from using their products. Leearin
- So if a company can be created for the sole purpose of going bankrupt and avoiding financial responsibility, then what’s stopping everyday Americans from creating “businesses “ to put their debt in and go bankrupt? – Praying
- A company that profits off the vulnerability of women and babies, knowingly selling cancer causing products not only deserves to have all of its assets seized but delivered swift punishment that lasts as long as they profited off of the public. Novaroman
Add comment