Best Of: Inside Johnson & Johnson’s bankruptcy two-step
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
This week, we’re revisiting an episode from last year. Johnson & Johnson, one of the world’s largest healthcare companies, is facing thousands of lawsuits from people alleging they got cancer from using one of their oldest products: talc-based baby powder. To manage the growing liability, J&J deployed a controversial bankruptcy manoeuvre known as the Texas two-step. The FT’s US pharmaceutical correspondent Jamie Smyth helps us explore whether J&J’s use of this manoeuvre is setting a precedent for corporations to evade accountability in America. Plus, stick around for an update on what’s happened to the Texas two-step since this episode first aired.
Clip from NBC
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For further reading:
Johnson & Johnson’s ‘Texas-two-step’ sparks outcry over US bankruptcy regime
Talc ruling a blow to J&J and the ‘Texas two-step’ bankruptcy jig
Talcum powder cancer claims target J&J’s new consumer carve-out
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On Twitter, follow Jamie Smyth (@JamieSmythF) and Michela Tindera (@mtindera07)
Read a transcript of this episode on FT.com
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