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Does J&J Have a Patriot Coal Problem?

posted by Stephen Lubben

J&J has put its Talc subsidiary into bankruptcy in North Carolina. Trick is, the only basis for venue in North Carolina is that the talc assets were put into a Texas LLC this past Tuesday, and then that Texas LLC converted into a North Carolina LLC the same day.  

Put to one side the problematic question of how the talc assets (and liabilities) ended up in the Texas LLC – what is the reason for the conversion to a North Carolina LLC?  It seems to be a rather transparent attempt to manufacture jurisdiction in North Carolina.

Arguably venue should be transferred to Texas. Perhaps the Western District of Texas – not that other Texas district – since J&J's only clear connection with Texas is incorporation ... 

October 15, 2021 at 9:11 AM in Corporate Bankruptcy

Comments

Here's the link to the corporate filings with the NC Secretary of State:

https://www.sosnc.gov/online_services/search/Business_Registration_Results

Posted by: Ed Boltz | October 15, 2021 at 11:27 AM

The comments to this entry are closed.

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