Plaintiffs File Motion for TRO in New Jersey State Court, Seek to Stop J&J from Executing ‘Texas Two-Step’
September 2, 2021
ATLANTIC CITY, N.J. –– Plaintiffs with talcum powder claims pending in New Jersey state court have filed a motion for a temporary restraining order aimed at stopping Johnson & Johnson from engaging in a “Texas Two-Step,” arguing that the move would allow the defendant to fraudulently transfer assets to a subsidiary and then “plunge it into bankruptcy.”
The plaintiffs filed the motion for TRO in the New Jersey Superior Court, Atlantic County, on Sept. 2.
In the motion, the plaintiffs argued that the “bankruptcy strategy violates fraudulent conveyance laws in New Jersey and most other states.”
“The effect, if J&J …