Bankruptcy in the U.S. Can Protect Against Litigation

Lawsuits concerning Johnson & Johnson's baby powder, linking it to several forms of cancer because of  asbestos it allegedly contained, were put on hold when the company invoked bankruptcy protection. NPR has had a series of reports about this questionable legal manoeuvre, the first on February 25. 3 min. 42 sec., transcript available.

More reporting followed on March 31, 4 min. 46 sec. transcript available, then on April 2nd, a 7 minute report, no transcript but a long text with pictures, then on April 4th a 12 minute version, no transcript.

Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts.