Third Circuit Rejects Johnson & Johnson’s Talc Unit Bankruptcy Maneuver, Citing Lack of Financial Distress
The Third Circuit on Thursday affirmed the dismissal of the reworked Chapter 11 case of Johnson & Johnson’s talc unit. The unit employed a controversial “Texas two-step” maneuver, which the court found did not demonstrate the requisite financial distress for bankruptcy protection. This decision marks a significant setback for Johnson & Johnson, as it continues…