The Daily Show’s Trevor Noah discusses the Johnson & Johnson Texas Two Step. Much like Purdue Pharma, J&J is trying to shield their knowledge that baby powder had asbestos contamination dating back to 1957.
Johnson & Johnson files for bankruptcy in the hopes of getting out of lawsuits after customers claimed their baby powder gave them cancer – and it’s actually working. This tactic has been used successfully by Georgia Pacific and other companies with asbestos liability for their past sale, use, installation and removal of asbestos with the knowledge it could be harmful if the fibers become airborne and breathed by people.
The use of baby powder often occurs in the bathroom, a small confined space and daily use has been linked to various asbestos related cancers including mesothelioma and ovarian cancer. The Johnson & Johnson Texas Two Step allows J&J to file chapter 11 for it’s newly formed company LTL, LLC, a Texas company and pursue bankruptcy in North Carolina Federal Bankruptcy Court.
The North Carolina Bankruptcy Court has to decide whether allow the bankruptcy to proceed or send the entire case to Delaware for more litigation on the issue.
Johnson and Johnson has lost many courtroom battles over asbestos in baby powder causing injury, but J&J has won some of the courtroom battles as well.