This podcast episode delves into the legal battles surrounding Johnson & Johnson's talc-based baby powder, which has been linked to cancer. Despite the company's denials, numerous lawsuits have been filed, leading them to file for bankruptcy in an attempt to resolve the legal challenges. The episode highlights the company's strategic use of the "Texas Two-Step" legal maneuver to avoid bankruptcy, but this strategy has been rejected by the court. Johnson & Johnson has since filed for bankruptcy a second time, offering a settlement of $8.9 billion, the largest product liability settlement ever made through bankruptcy. However, the settlement's validity remains uncertain, and the case raises concerns about corporations using bankruptcy to avoid liability for victims.
