(Bloomberg) — Johnson & Johnson defeated an effort to stop it from using the so-called Texas two step bankruptcy strategy to rid itself of tens of thousands of asbestos poisoning lawsuits.
U.S. Bankruptcy Judge Laurie Silverstein refused to block the consumer products giant from taking corporate restructuring actions related to its asbestos liabilities and indemnity contracts given to the companys former talc supplier.
Asbestos victims, who claim they were made ill by tainted talc in J&Js baby powder, had accused the company of plotting to restructure itself using a Texas law that allows so-called divisive mergers. Under the Texas two-step bankruptcy strategy, a company reincorporates in Texas into two separate units. One unit gets mos…
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