The Texas Two-Step and Johnson & Johnson’s Baby Powder

What’s safer than baby powder? Parents have been trusting Johnson & Johnson for over 100 years to powder their baby’s bottoms.

Yet, numerous studies have revealed the presence of trace amounts of asbestos in this talc-based powder. Thousands of parents now claim that this asbestos is responsible for their cancers. A Reuters investigation catalogued this evidence and the fact that J&J knew about the asbestos since the 1950s, yet continued to sell the powder. 

Johnson & Johnson is proposing a $9 billion dollar settlement for the over 38,000 lawsuits brought and all claims into the future. However, it depends on the courts accepting a controversial bankruptcy procedure called “the Texas Two-Step.” This strategy is being used to address a raft of personal injury complaints against a number of companies, but critics call it nothing more than a ‘sham bankruptcy’ that is being used to let corporations off the hook.

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