Reuters reveals J&J’s secret plan to cap litigation payouts to cancer victims
In April 2021, Reuters reported that Johnson & Johnson had taken steps to move all its talc-related liability onto a newly created subsidiary, which would then file for bankruptcy. This maneuver, known as a Texas two-step, was an attempt to manage the increasing number of claims that asbestos in its talc had caused serious illnesses. It stopped all litigation against the company and meant that plaintiffs would have to compete in bankruptcy court for a limited amount of compensation.0
