No.

My OP said that Texas Two step was used all the time. I said J&J tried to use Texas Two Step and it ultimately failed. And yes it did fail mostly because it was not being used in good faith.

> And yes it did fail mostly because it was not being used in good faith

As of today, judgments against J&J total to less than $10b. J&J committed up to $61.5b to LTL, the company it spun off. Simple arithmetic shows us all current judgments will be satisfied. https://news.ycombinator.com/item?id=47222778

The judge used this $61.5b commitment - which J&J made to ensure LTL would pay for all the lawsuits J&J lost - as proof that LTL wasn't actually bankrupt. Which is weird but also correct.

Where is the bad faith today? I mean it's possible J&J has done some internal analysis and expects to be on the hook for more than that in the future. Or there's some other arcane legal issue I don't understand. And in that sense committing the $61.5b is a smart way of capping their losses while still looking like good guys today. There's no evidence of that right now though.

To re-iterate, the bankruptcy was rejected because of how it was structured. Not because there was an attempt to dodge liability. To me that's a more damning indictment of the legal system because it implies liability dodging might have worked if it were structured right.