Johnson & Johnson is reportedly thinking about filing for bankruptcy.
Bankruptcy is reportedly on the minds of execs over at Johnson & Johnson as it tries to figure out a plan to handle its Baby Powder liabilities. According to Fox Business, unloading its Baby Powder liabilities could lower the settlement amount through the smaller company.
The company might bite the benefits of a Texas law that allows companies to distribute at least two entities, a process called two-step bankruptcy. According to Reuters, there is no detail on whether or not the company plans to file for bankruptcy.
The news comes years after it was reported that the company knew about and covered up the existence of asbestos in samples of its talc-based powders. This led to some of its consumers allegedly getting cancer. The company issued a voluntary recall in 2019. The company has since been dealing with thousands of lawsuits because of the company’s alleged negligence.