 | This is the sandbox page where you will draft your initial Wikipedia contribution.
If you're starting a new article, you can develop it here until it's ready to go live. If you're working on improvements to an existing article, copy only one section at a time of the article to this sandbox to work on, and be sure to use an edit summary linking to the article you copied from. Do not copy over the entire article. You can find additional instructions here. Remember to save your work regularly using the "Publish page" button. (It just means 'save'; it will still be in the sandbox.) You can add bold formatting to your additions to differentiate them from existing content. |
Alternatives to bankruptcy[edit]
editA Texas divisional merger is a process allowed by Texas law in which a company can create a separate company to take over liabilities, with the existing company operating normally. The new company, with a different name, can locate in a state such as North Carolina where bankruptcy laws are different, and then declare bankruptcy, paying less than the original company would have. The latest case of a Texas divisional merger was by company, Johnson & Johnson. Recently, J&J has been hit by thousands of lawsuits by women claiming that J&J baby powder, containing talc, caused their ovarian cancer. While the company has held that their products do not cause ovarian cancer, they lost many cases and a lot of money. This is what led them to perform a Texas divisional merger. They split their company, putting all talc liabilities on the new company, and keeping all assets within the original. This halted all cases by women with ovarian cancer, and has been seen as controversial since it keeps women from receiving compensation from Johnson & Johnson. [1]
edit- ↑ Nast, Condé (2022-09-12). "Johnson & Johnson and a New War on Consumer Protection". The New Yorker. Retrieved 2022-12-02.