• Avid Amoeba@lemmy.ca
    link
    fedilink
    arrow-up
    21
    ·
    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
      link
      fedilink
      English
      arrow-up
      18
      arrow-down
      1
      ·
      edit-2
      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

      • Bakkoda
        link
        fedilink
        arrow-up
        8
        ·
        1 year ago

        Look up MNK/Mallinkrodt aka SpecGX. Just filed for bankruptcy right after emerging from bankruptcy in order to shed the original agreement of future products in lieu of fines or some such shit. Opioid manufacturer double bankruptcy.