[wak90]

It's really odd that Bloomberg somehow reports that businesses abusing liability and bankruptcy laws is good, actually.

[medler]

He doesn’t say it’s good. He says that’s not what’s happening.

If you think he’s wrong, please explain why. I genuinely would love to hear a well-reasoned critique of his analysis.

[flagrant_taco]

For one thing, this approach allows J&J to determine their maximum liability by only spinning off a certain amount to the subsidiary.

It seems more fair to allow any and all claimants to sue J&J, or join together for a class action lawsuit. If the liabilities outstrip the company's total worth they can then go for bankruptcy of the entire J&J business and split assets proportionately across all liabilities.

[John23832]

It allows j&j to only offer what they are willing to lose?

It would different if the court themselves attempted to limit liabilities. If I could limit the cost of my liabilities, you could sure that I’d discount them to the detriment of those that owned the liabilities.

[mitthrowaway2]

By his reasoning, it's J&J that should declare bankruptcy. Not create a bankrupt subsidiary.