Johnson & Johnson has faced endless lawsuits related to the baby powder product many say caused their cancer. So they took all those liabilities, wrapped them up in an LLC, and then declared the side company bankrupt. “The bankruptcy route taken by Johnson & Johnson, formally called a divisional merger, is better known as the Texas two-step.” It could work. And if it does, it will become the norm. Casey Cep in The New Yorker: Johnson & Johnson and a New War on Consumer Protection.