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Friday, January 30th, a US judge dismissed a lawsuit against pharmaceutical company Johnson & Johnson (J&J), wherein plaintiffs claimed J&J relied on the “Texas Two-Step” as part of its bankruptcy plan. Plaintiffs believe this strategy resulted in fraud related to bankruptcy in the J&J talc division and the judge disagreed, stating plaintiffs failed to prove any real harm caused by the delay.

More on the court’s decision and potential investor reaction in this TechStock2 article.

Bankruptcy & Creditors’ Rights attorney, Bill Siegel first explained the “Texas Two-Step” and how a Divisive Merger is created in this article.

He wrote a follow-up article that covered the LTL Management LLC bankruptcy dismissal and how the Third Circuit looked at “financial distress.”

By Published On: February 2, 2026Categories: BankruptcyTags: , , , , , , , , ,

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ABOUT THE AUTHOR:

Avatar of Bill Siegel
William L. (Bill) Siegel is a Shareholder and Section Head of the Cowles and Thompson Bankruptcy and Creditors’ Rights Practice Group as well as a member of the Corporate and Business Practice Group. His experience includes representing individuals and business entities in their corporate and transactional affairs, including drafting and negotiating agreements of all types, and representing individuals and business entities in disputes that may arise in litigation in State and Federal Courts. He also represents debtors, creditors, Trustees, and Committees in bankruptcy matters in Chapter 7 liquidations and Chapter 11 reorganizations. His clients include small and medium-sized businesses, start-up technology companies, and partnerships. He frequently publishes articles and content regarding trends in bankruptcy law, the economy, commercial real estate, and retail-related matters.