Plaintiffs Seek to Stop J&J from Spinning Talc Liabilities Off into Shell Company That Would Later Seek Bankruptcy Protection
August 24, 2021
- Emergency Motion
- Petition in Equity
ST. LOUIS –– A group of talcum powder plaintiffs with claims pending in Missouri state court have filed a motion for a restraining order, seeking to stop Johnson & Johnson from engaging in a “Texas Two-Step,” a legal move that would spin off a new corporate shell entity, in which talcum powder liabilities would reside, and subsequently filing for bankruptcy.
In an Aug. 24 emergency motion for temporary restraining order and preliminary injunction filed with the Missouri Circuit Court, 22nd Judicial Circuit, St. Louis City, the plaintiffs say the bankruptcy-related efforts by Johnson & Johnson constitute “unlawful and improper corporate …