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.
Isn’t that the point of limited liability corporations? To move profits into private pockets while keeping liabilities in the corporation?
That’s not what they did tho. They did this instead … and lower courts said no.
source here