• Avid Amoeba@lemmy.ca
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      1 year ago

      Isn’t that the point of limited liability corporations? To move profits into private pockets while keeping liabilities in the corporation?

      • girlfreddy@sh.itjust.works
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        1 year ago

        That’s not what they did tho. They did this instead … and lower courts said no.

        J&J is among four major companies that have filed so-called Texas two-step bankruptcies to avoid potentially massive lawsuit exposure. The tactic involves creating a subsidiary to absorb the liabilities and to immediately file for Chapter 11.

        source here