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J&J baby-powder asbestos cover-up (1970s–2020s)

Written by:Dr. Elena Marsh· May 12, 2026
Reviewed by:Dr. Sofia Reyes· May 12, 2026

TL;DR

J&J knew internally for decades that its baby powder talc could contain asbestos. Reuters Dec 2018 published the documents. Ingham 2018: $4.69B jury verdict. US/Canada sales ended 2020; global 2023. LTL bankruptcy strategy rejected twice by federal courts 2023.

Analysis

Claim Map

Core claim

A Reuters investigation published in December 2018 found that Johnson & Johnson knew for decades that its baby powder talc sometimes tested positive for asbestos, a known carcinogen, and did not disclose this to regulators or the public. Internal J&J documents dated from the 1970s through the early 2000s showed awareness of asbestos contamination in talc sourced from mines in Vermont and elsewhere. In 2018, a Missouri jury awarded $4.69 billion to 22 women who alleged asbestos-contaminated talc caused their ovarian cancer (Ingham v. Johnson & Johnson). J&J discontinued US and Canadian baby powder sales in 2020 and global sales in 2023. Two attempts to resolve talc liability through bankruptcy of a subsidiary (LTL Management) were rejected by federal courts in 2023.

Documented fact

Reuters December 2018: internal documents showing asbestos knowledge

Unsupported inference

J&J disputes Reuters interpretation and maintains product safety

Evidence that would change this

A verdict change would require new primary records, reproducible physical evidence, or named, corroborated testimony that directly answers the disputed claim.

Current verdict

confirmed, 5% confidence

Evidence Strength Matrix

A compact map of what is documented, where the claim leaps, and what evidence affects the verdict.

Adjacent documented fact
Documented: Reuters December 2018: internal documents showing asbestos knowledge
Unsupported: The adjacent fact does not by itself prove coordination, motive, scale, or concealment.
Counter-evidence: J&J disputes Reuters interpretation and maintains product safety
Verdict impact: Sets the baseline for what is real before broader claims are tested.
Claim mechanism
Documented: Any proposed mechanism must be tied to records, physical evidence, technical limits, or named procedures.
Unsupported: A mechanism remains weak when it depends on inference from coincidence, visual artifacts, or anonymous claims.
Counter-evidence: FDA conducted some tests finding no asbestos in J&J talc
Verdict impact: Determines whether the claim is testable or mainly narrative pattern-matching.
Verdict movement
Documented: The page states what future evidence would matter.
Unsupported: A claim does not move the verdict by repeating suspicion without new primary evidence.
Counter-evidence: Reuters December 2018 investigation of internal J&J documents confirmed decades of internal knowledge of asbestos in talc without adequate regulatory disclosure. Ingham v. J&J (2018): $4.69 billion jury verdict for 22 women with ovarian cancer (reduced to $2.1 billion on appeal). J&J discontinued US/Canadian talc baby powder in 2020 and global sales in 2023. Two attempts to resolve liability via LTL Management bankruptcy rejected by federal courts in 2023. Tens of thousands of active cases remain.
Verdict impact: confirmed, 5% confidence

Claim Family Context

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Rumor Lifecycle

How this claim moves from origin to amplification, record check, verdict, and recurrence.

1
First appearance

2018

2
Amplification

Amplification pattern still being documented.

3
Record check

Reuters December 2018: internal documents showing asbestos knowledge

4
Verdict boundary

Reuters December 2018 investigation of internal J&J documents confirmed decades of internal knowledge of asbestos in talc without adequate regulatory disclosure. Ingham v. J&J (2018): $4.69 billion jury verdict for 22 women with ovarian cancer (reduced to $2.1 billion on appeal). J&J discontinued US/Canadian talc baby powder in 2020 and global sales in 2023. Two attempts to resolve liability via LTL Management bankruptcy rejected by federal courts in 2023. Tens of thousands of active cases remain.

5
Recurrence risk

Often recurs through the medical scare cycles claim family.

Source Health

Source guideURLs complete
Sources
22/12
Credibility Mix
16 high / 6 medium / 0 low
Missing URLs
0
Latest Source Year
2024

Why this page is still being upgraded

This page is below one or more content-quality gates: counter-evidence balance (3/4), missing verdict-change standard. Editors are expanding the narrative, source base, and related reading before marking the page complete.

6 min readDifficulty: 4/5Fact-checked: Aug 2026
Body 1624/1200 wordsSources 22/12Freshness Aug 2026, review Feb 2028Evidence 8 supporting / 3 counter

Reuters December 2018 investigation of internal J&J documents confirmed decades of internal knowledge of asbestos in talc without adequate regulatory disclosure.

6 min read1,624 wordsUpdated 22 Aug 2026
8 supporting3 debunking22 sources

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J&J Baby-Powder Asbestos Cover-Up (1970s–2020s)

Introduction

Johnson & Johnson''s baby powder — one of the most recognised consumer products in the world — has been at the centre of a decades-long legal and public health controversy over asbestos contamination of cosmetic talc. A December 2018 Reuters investigation, drawing on thousands of pages of internal J&J documents, found that the company had known for decades that its talc could contain asbestos and had not disclosed this information to regulators or the public.

What the Internal Documents Show

The Reuters investigation reviewed J&J internal memos, studies, and correspondence dating from the 1970s through the early 2000s. Key findings included:

  • Internal tests commissioned by J&J and its suppliers found trace amounts of asbestos in talc samples from the 1970s onward.
  • Some documents showed J&J scientists and executives discussing the asbestos findings and the regulatory risk they posed.
  • The company lobbied regulators — including the FDA — to adopt testing standards that were less sensitive to asbestos detection.
  • J&J communicated to regulators that its talc was asbestos-free while internal records showed testing that found otherwise.

J&J disputed the Reuters interpretation of the documents, arguing the findings were isolated and that the overwhelming weight of evidence showed its talc was safe.

Litigation and the Ingham Verdict

By 2018, thousands of lawsuits had been filed by plaintiffs alleging that asbestos-contaminated J&J baby powder caused their ovarian cancer or mesothelioma (a cancer directly linked to asbestos exposure). The most significant single verdict came in July 2018 in Ingham v. Johnson & Johnson, a Missouri state court case brought by 22 women. The jury awarded $4.69 billion in damages — $550 million compensatory, $4.14 billion punitive. J&J appealed; the Missouri Court of Appeals reduced the award to $2.1 billion in 2021. J&J continued to appeal to the US Supreme Court.

Product Discontinuation

In May 2020, J&J announced it would discontinue talc-based baby powder sales in the United States and Canada, citing "misinformation" and "a constant barrage of litigation advertising." In August 2023, J&J announced global discontinuation of talc-based baby powder, replacing it with a cornstarch-based formula. The company maintained that the product was safe and that the discontinuation was a business decision.

The LTL Bankruptcy Strategy

J&J attempted to resolve its talc liability by creating a subsidiary — LTL Management — and placing it into Chapter 11 bankruptcy, a strategy that would have channelled all talc claims into a bankruptcy trust and capped J&J''s liability. The "Texas Two-Step" bankruptcy manoeuvre was rejected twice by federal courts. In January 2023, the Third Circuit Court of Appeals ruled that LTL was not in financial distress sufficient to justify bankruptcy and dismissed the case. A second bankruptcy filing was also rejected in 2023.

Verdict

Confirmed. The Reuters investigation, internal documents, the Ingham verdict, and J&J''s own decision to discontinue the product globally confirm that the company had internal knowledge of asbestos contamination that was not adequately disclosed to regulators or consumers. The scale of litigation — tens of thousands of cases — and the judicial rejection of the bankruptcy strategy confirm the legal and factual foundation of the concealment claim.

Why Talc and Asbestos Occur Together

Talc and asbestos are geological siblings, not accidental neighbors. Talc forms when magnesium-rich rock is altered by heat, pressure, and circulating fluids — a process that, in many talc deposits worldwide, occurs in the same host rock that produces tremolite, actinolite, and other amphibole minerals, the same mineral family as several regulated forms of asbestos. The U.S. Geological Survey has mapped this association directly in American talc-mining districts, documenting ore bodies where tremolite occurs intergrown with the talc and, in places, as asbestiform particles. A single seam can run clean while ore a few meters away is contaminated, so testing protocol — not just mine selection — often determines whether a batch is certified asbestos-free.

That is where the second half of the "J&J knew" dispute lives: not just what was found, but how hard anyone looked. Older bulk methods such as X-ray diffraction and polarized light microscopy can miss trace contamination and struggle to distinguish true asbestiform fibers from "cleavage fragments" — fiber-shaped particles that form differently and whose comparative health risk remains contested. Electron microscopy detects smaller quantities of both and resolves the distinction more reliably. J&J used a combination of methods over the decades, but court records show it also dismissed outside labs' positive findings as products of "unreliable methodology" — an argument that only holds if the more sensitive tests, not J&J's own, were producing false readings.

Inside the Memos: What Reuters and the Litigation Record Show

The single most consequential document trove here is the December 2018 Reuters special report by reporter Lisa Girion, built on internal J&J memos, executive correspondence, and unpublished test results, much surfaced through discovery in talc lawsuits and never previously public. Records reviewed for that investigation show that from at least 1971 into the early 2000s, raw talc and finished powder from J&J's mines sometimes tested positive for small amounts of asbestos in tests the company or its suppliers had commissioned, and that executives, doctors, and lawyers inside the company discussed the findings, the regulatory exposure they created, and how to keep the powder "in compliance" without public disclosure. J&J's response was immediate, calling the story false and standing by decades of independent testing; Reuters maintained the reporting was based entirely on J&J's own documents. Whatever the final scientific verdict on any single sample, the episode shows a company whose internal risk assessments and public safety claims had, at multiple points, diverged.

From a $4.7 Billion Verdict to Three Failed Bankruptcies

The financial stakes sharpened in July 2018, when a Missouri jury awarded 22 ovarian-cancer plaintiffs $4.69 billion in Ingham v. Johnson & Johnson, finding conduct meeting the state's high bar for "evil motive or reckless indifference." The 2020 appellate reduction to roughly $2.12 billion turned on personal-jurisdiction technicalities for out-of-state plaintiffs, not the underlying asbestos evidence, which the Missouri Court of Appeals left undisturbed. The U.S. Supreme Court declined to hear J&J's final appeal in June 2021 without comment, with Justices Alito and Kavanaugh recused over financial and family conflicts, leaving the reduced verdict intact.

Facing that judgment and tens of thousands of further claims, J&J tried a corporate maneuver rather than a courtroom one: the "Texas Two-Step," splitting a subsidiary in two and shunting all talc liabilities into a shell company, LTL Management, which then filed Chapter 11 to freeze litigation nationwide and cap total exposure. It failed three times. The Third Circuit dismissed the first filing in January 2023, ruling that a debtor backed by tens of billions in guaranteed funding was not in the "financial distress" bankruptcy law requires. A second LTL filing was thrown out that July for the same defect — Judge Michael Kaplan's opinion found only "smoke," not the "flames" a good-faith Chapter 11 petition demands. A third attempt, restructured as Red River Talc LLC around an $8–10 billion settlement, collapsed again in March 2025 when bankruptcy judge Christopher Lopez found the claimant vote had been secured through improper means and the plan improperly shielded non-bankrupt third parties. Separately, in 2024, 42 state attorneys general reached a $700 million multistate settlement over claims J&J misrepresented talc's safety, barring the company from resuming the U.S. sales it had already discontinued.

J&J's Defense — And Why It Hasn't Closed the Case

J&J's core defense has never wavered: its talc is safe and asbestos-free, more than 150 independent-lab tests over four decades found no contamination, and FDA testing has repeatedly failed to confirm asbestos in the large majority of samples checked. The company also kept winning individual trials after abandoning bankruptcy — including a defense verdict in mid-2026 — evidence its lawyers cite that juries, given the same science, frequently do not find causation.

That defense holds up as far as it goes: not every claim has succeeded at trial, and some tested samples genuinely came back clean, consistent with the uneven, seam-by-seam contamination pattern above. What it does not answer is the internal record itself — memos showing the company knew testing sometimes found asbestos while it kept using unqualified language like "pure" and "safe," and a decade spent preferring bankruptcy over the tort system to cap liability, a strategy three separate courts found was not brought in good faith. Even J&J's 2026 global settlement resolves claims without conceding the underlying science, a posture more consistent with managing financial risk than with vindication.

Aftermath: A $5.5 Billion Reckoning in 2026

With the bankruptcy route exhausted, J&J went back to fighting and settling cases individually, and results stayed volatile. A Baltimore jury awarded $1.5 billion in a mesothelioma case in December 2025, while a California jury's $966 million verdict from October 2025 was cut to $16 million in March 2026 after a judge struck the punitive-damages portion for insufficient evidence, without disturbing the finding that the talc caused the cancer. Layered on top, the WHO's cancer research arm reclassified talc generally — independent of asbestos — as "probably carcinogenic to humans" in 2024, opening a second scientific front beyond the asbestos question this fact-check addresses. Finally, on July 27, 2026, J&J disclosed in an SEC filing a $5.5 billion settlement covering roughly 76,000 ovarian-cancer claims, contingent on at least 95% of claimants opting in, with a first payment of up to $3 billion due in 2027. The company again denied wrongdoing even as it agreed to pay. Mesothelioma claims and a large pending UK case sit outside the deal, so litigation over what J&J knew, and when, continues even as its largest pool of U.S. claims heads toward resolution.

Evidence Filters11

Reuters December 2018: internal documents showing asbestos knowledge

SupportingStrong

The Reuters investigation published internal J&J documents from the 1970s onward showing that company-commissioned tests and supplier tests found asbestos in talc samples, and that executives and scientists were aware of and discussed this contamination.

Ingham v. J&J (2018): $4.69 billion jury verdict

SupportingStrong

A Missouri state jury awarded $4.69 billion to 22 women who alleged asbestos-contaminated J&J talc caused their ovarian cancer — $550 million compensatory and $4.14 billion punitive. The Missouri Court of Appeals reduced the verdict to $2.1 billion in 2021.

US/Canada baby powder discontinued 2020; global 2023

SupportingStrong

J&J announced discontinuation of talc-based baby powder in the US and Canada in May 2020, citing "misinformation" and litigation pressure. Global discontinuation followed in August 2023. The company denies safety problems but no longer markets the product.

LTL bankruptcy strategy rejected twice by federal courts (2023)

Supporting

J&J's "Texas Two-Step" strategy of transferring talc liability to subsidiary LTL Management and placing it in Chapter 11 bankruptcy was rejected by the Third Circuit Court of Appeals in January 2023 and a subsequent filing was also dismissed. Federal courts found LTL was not in genuine financial distress.

J&J lobbied for less-sensitive asbestos testing standards

SupportingStrong

Internal documents showed J&J lobbied the FDA and industry bodies to adopt talc testing methodologies that were less sensitive to asbestos detection than alternatives available to regulators. This lobbying occurred while the company was representing its talc as asbestos-free.

Tens of thousands of active cases — ovarian cancer and mesothelioma

Supporting

By 2023, tens of thousands of lawsuits had been filed by plaintiffs alleging talc-related ovarian cancer and mesothelioma — a form of cancer with an exceptionally strong causal link to asbestos exposure. The volume and medical specificity of the claims corroborate the asbestos contamination evidence.

J&J disputes Reuters interpretation and maintains product safety

Debunking

J&J has consistently disputed the Reuters investigation's conclusions, arguing that the cited internal tests were isolated incidents and that the overwhelming body of evidence showed its talc was asbestos-free and safe. The company has pointed to FDA tests that found no asbestos in J&J talc samples.

Rebuttal

The dispute over individual test results does not undermine the core finding that positive internal tests were not disclosed to regulators. The volume of litigation and the scale of jury verdicts indicate that courts have not accepted J&J's characterisation as fully exculpatory.

FDA conducted some tests finding no asbestos in J&J talc

Debunking

Some FDA-conducted tests of J&J talc over the years found no asbestos contamination. J&J has cited these results as evidence of the product's safety. The dispute over testing methodology and sample selection is genuine.

Rebuttal

Negative tests in some samples do not establish that all samples were clean, particularly given internal J&J documents showing positive results in others. The testing methodology dispute is real but does not resolve the disclosure question.

Internal J&J Documents Show Decades of Asbestos Detection

SupportingStrong

Reuters' 2018 investigation citing internal J&J memos and test results dating to the 1970s showed company scientists detected asbestos in talc samples on multiple occasions. Executives discussed how to address regulatory scrutiny without triggering product withdrawal or public disclosure.

FDA Testing Found Asbestos in Baby Powder Samples (2019)

SupportingStrong

In October 2019 the FDA announced its own laboratory testing had detected chrysotile asbestos in a single Johnson's Baby Powder bottle from an online retailer. J&J disputed the methodology, but the finding prompted a voluntary recall of 33,000 bottles and intensified litigation.

Show 1 more evidence point

Many Individual Lawsuits Failed to Prove Causation

Debunking

Despite thousands of lawsuits, courts including the US Third Circuit repeatedly found insufficient epidemiological evidence linking cosmetic talc specifically to ovarian cancer in individual plaintiffs. The International Agency for Research on Cancer classifies perineal talc use as only a Group 2B 'possible carcinogen' — a relatively weak designation.

Evidence Cited by Believers8

Reuters December 2018: internal documents showing asbestos knowledge

SupportingStrong

The Reuters investigation published internal J&J documents from the 1970s onward showing that company-commissioned tests and supplier tests found asbestos in talc samples, and that executives and scientists were aware of and discussed this contamination.

Ingham v. J&J (2018): $4.69 billion jury verdict

SupportingStrong

A Missouri state jury awarded $4.69 billion to 22 women who alleged asbestos-contaminated J&J talc caused their ovarian cancer — $550 million compensatory and $4.14 billion punitive. The Missouri Court of Appeals reduced the verdict to $2.1 billion in 2021.

US/Canada baby powder discontinued 2020; global 2023

SupportingStrong

J&J announced discontinuation of talc-based baby powder in the US and Canada in May 2020, citing "misinformation" and litigation pressure. Global discontinuation followed in August 2023. The company denies safety problems but no longer markets the product.

LTL bankruptcy strategy rejected twice by federal courts (2023)

Supporting

J&J's "Texas Two-Step" strategy of transferring talc liability to subsidiary LTL Management and placing it in Chapter 11 bankruptcy was rejected by the Third Circuit Court of Appeals in January 2023 and a subsequent filing was also dismissed. Federal courts found LTL was not in genuine financial distress.

J&J lobbied for less-sensitive asbestos testing standards

SupportingStrong

Internal documents showed J&J lobbied the FDA and industry bodies to adopt talc testing methodologies that were less sensitive to asbestos detection than alternatives available to regulators. This lobbying occurred while the company was representing its talc as asbestos-free.

Tens of thousands of active cases — ovarian cancer and mesothelioma

Supporting

By 2023, tens of thousands of lawsuits had been filed by plaintiffs alleging talc-related ovarian cancer and mesothelioma — a form of cancer with an exceptionally strong causal link to asbestos exposure. The volume and medical specificity of the claims corroborate the asbestos contamination evidence.

Internal J&J Documents Show Decades of Asbestos Detection

SupportingStrong

Reuters' 2018 investigation citing internal J&J memos and test results dating to the 1970s showed company scientists detected asbestos in talc samples on multiple occasions. Executives discussed how to address regulatory scrutiny without triggering product withdrawal or public disclosure.

FDA Testing Found Asbestos in Baby Powder Samples (2019)

SupportingStrong

In October 2019 the FDA announced its own laboratory testing had detected chrysotile asbestos in a single Johnson's Baby Powder bottle from an online retailer. J&J disputed the methodology, but the finding prompted a voluntary recall of 33,000 bottles and intensified litigation.

Counter-Evidence3

J&J disputes Reuters interpretation and maintains product safety

Debunking

J&J has consistently disputed the Reuters investigation's conclusions, arguing that the cited internal tests were isolated incidents and that the overwhelming body of evidence showed its talc was asbestos-free and safe. The company has pointed to FDA tests that found no asbestos in J&J talc samples.

Rebuttal

The dispute over individual test results does not undermine the core finding that positive internal tests were not disclosed to regulators. The volume of litigation and the scale of jury verdicts indicate that courts have not accepted J&J's characterisation as fully exculpatory.

FDA conducted some tests finding no asbestos in J&J talc

Debunking

Some FDA-conducted tests of J&J talc over the years found no asbestos contamination. J&J has cited these results as evidence of the product's safety. The dispute over testing methodology and sample selection is genuine.

Rebuttal

Negative tests in some samples do not establish that all samples were clean, particularly given internal J&J documents showing positive results in others. The testing methodology dispute is real but does not resolve the disclosure question.

Many Individual Lawsuits Failed to Prove Causation

Debunking

Despite thousands of lawsuits, courts including the US Third Circuit repeatedly found insufficient epidemiological evidence linking cosmetic talc specifically to ovarian cancer in individual plaintiffs. The International Agency for Research on Cancer classifies perineal talc use as only a Group 2B 'possible carcinogen' — a relatively weak designation.

Timeline

  1. Ingham verdict: Missouri jury awards $4.69 billion

    A Missouri jury awards $4.69 billion to 22 women who alleged asbestos-contaminated J&J talc caused their ovarian cancer. The punitive component — $4.14 billion — reflects the jury's finding of deliberate concealment. The verdict is the largest in the talc litigation.

    Source →
  2. Reuters Investigation Publishes Internal J&J Asbestos Memos

    Reuters published a landmark investigation using internal company documents, scientific studies, and trial exhibits showing J&J had known since at least 1971 that its talc occasionally tested positive for asbestos. The story triggered a 10% stock drop and a wave of new litigation filings.

    Source →
  3. Reuters investigation: J&J knew of asbestos contamination for decades

    Reuters publishes its investigation of internal J&J documents showing that the company commissioned tests found asbestos in talc from the 1970s onward and that executives discussed the regulatory risk. J&J's stock falls approximately 10% on the day of publication.

    Source →
  4. J&J discontinues talc baby powder in US and Canada

    J&J announces discontinuation of talc-based baby powder in the US and Canada, citing litigation and "misinformation." Global discontinuation follows in August 2023. The company replaces the product with a cornstarch-based formula.

  5. Third Circuit rejects LTL bankruptcy — second rejection follows

    The Third Circuit Court of Appeals rules that LTL Management — J&J's liability-transfer subsidiary — is not in genuine financial distress and dismisses the Chapter 11 bankruptcy. A second filing is also dismissed later in 2023. Tens of thousands of talc cases remain active.

    Source →
  6. J&J's Second Bankruptcy Attempt Rejected by Court

    A federal bankruptcy judge rejected Johnson & Johnson's second attempt to use the 'Texas Two-Step' corporate restructuring strategy to cap talc liability at roughly $8.9 billion. The court ruled J&J's operating subsidiary was not in genuine financial distress, forcing the company back to direct litigation.

    Source →

Verdict

Confirmed5% confidence

Reuters December 2018 investigation of internal J&J documents confirmed decades of internal knowledge of asbestos in talc without adequate regulatory disclosure. Ingham v. J&J (2018): $4.69 billion jury verdict for 22 women with ovarian cancer (reduced to $2.1 billion on appeal). J&J discontinued US/Canadian talc baby powder in 2020 and global sales in 2023. Two attempts to resolve liability via LTL Management bankruptcy rejected by federal courts in 2023. Tens of thousands of active cases remain.

Frequently Asked Questions

How long did J&J know about potential asbestos contamination?

The Reuters December 2018 investigation found internal J&J documents dating from the 1970s onward showing company-commissioned and supplier tests found trace amounts of asbestos in talc samples. If the Reuters interpretation of the documents is accurate, J&J had internal awareness for approximately 40 to 50 years before the global product discontinuation in 2023.

What cancers are linked to asbestos-contaminated talc?

Plaintiffs in talc litigation have primarily alleged two cancers: ovarian cancer (the claim in the Ingham and related cases) and mesothelioma. Mesothelioma has a well-established and extremely strong causal link to asbestos exposure. The link between talc and ovarian cancer has been more scientifically contested, though thousands of plaintiffs have prevailed in litigation.

What was the LTL bankruptcy strategy and why was it rejected?

J&J created a subsidiary called LTL Management, transferred its talc liability to it, and placed LTL in Chapter 11 bankruptcy — a tactic known as the "Texas Two-Step." The strategy would have channelled all talc claims into a bankruptcy trust, capping J&J's liability. The Third Circuit Court of Appeals rejected the strategy twice in 2023, ruling that LTL was not in genuine financial distress sufficient to justify bankruptcy protection.

Is J&J's talc baby powder still sold?

No. J&J discontinued talc-based baby powder in the United States and Canada in May 2020 and globally in August 2023. The product was replaced with a cornstarch-based formula. J&J maintained throughout that the talc product was safe and that the discontinuation was a business decision, not an admission of safety problems.

Did Johnson & Johnson discontinue talc-based baby powder?

J&J discontinued talc-based Baby Powder in North America in 2020, citing declining sales amid litigation rather than safety admissions. In 2023 it announced a global discontinuation to be replaced by cornstarch-based products, while continuing to deny that its talc caused cancer.

What is the 'Texas Two-Step' and why did J&J use it?

The Texas Two-Step is a legal manoeuvre where a company splits into two entities — one holding the liabilities and one continuing operations — then files the liability entity for bankruptcy to cap payouts. Courts ultimately rejected J&J's use of this strategy because the parent company itself was financially solvent.

Sources

High Credibility
Wall Street Journal·May 2020·WSJ Staff
High Credibility
US Court of Appeals, Third Circuit·Jan 2023·Third Circuit Court
High Credibility
Bloomberg·Aug 2023·Bloomberg Staff
High Credibility
Show 17 more sources
JAMA·Jan 2020·Various oncologists
High Credibility
Wikipedia·Jan 2024·Wikipedia contributors
Medium Credibility
Law360·Jun 2023·Law360 Staff
High Credibility
Reuters Investigates·Dec 2018·Lisa Girion
High Credibility
U.S. Food and Drug Administration·Oct 2019·FDA Office of Cosmetics and Colors
High Credibility
U.S. Bankruptcy Court, District of New Jersey·Oct 2021·LTL Management LLC
High Credibility

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