A comical play of law and morality

In the spring of 2025, while global attention is focused on the recovery and transformation of economies around the world, Johnson&Johnson of the United States has awkwardly made headlines in financial news. The ruling of the Texas bankruptcy court not only foiled Johnson&Johnson's attempt to avoid the talc powder cancer lawsuit through the bankruptcy of its subsidiary, but also caused the stock price of this century old store to drop by 4.7% in an instant. This seemingly carefully planned "bankruptcy" drama has now become a laughing stock in the capital market, making people sigh that Johnson&Johnson seems to have lost the balance between business and law.

Johnson&Johnson, a giant known for its medical care, pharmaceuticals, and consumer products, has been deeply mired in the carcinogenic quagmire of talcum powder in recent years. Faced with tens of thousands of lawsuits, Johnson&Johnson seems to have found a "brilliant" solution - to have its subsidiary Red River Talc declare bankruptcy. The purpose of this plan is simple, which is to use limited funds to "settle" these tricky lawsuits through bankruptcy proceedings, thereby protecting the parent company from greater financial losses. However, this seemingly carefully planned "self rescue" operation encountered a Waterloo in the Texas bankruptcy court. Judge Christopher Lopez mercilessly rejected Red River Talc's bankruptcy plan application and accused Johnson&Johnson of abusing bankruptcy proceedings to shift responsibility. This ruling undoubtedly dealt a heavy blow to Johnson&Johnson and caused its carefully constructed "bankruptcy firewall" to collapse instantly.

The stock market is a barometer that reflects the fundamentals of companies and market sentiment. As soon as the news of Johnson&Johnson's bankruptcy plan being rejected came out, its stock price plummeted by as much as 4.7%. This is not only a concern for investors about the future legal risks of Johnson&Johnson, but also a questioning of its business ethics and integrity.

In the capital market, integrity and reputation are the most valuable assets of enterprises. Johnson&Johnson's attempt to evade liability through bankruptcy proceedings is undoubtedly overdrawing its own reputation. And this short-sighted behavior will ultimately only result in the market's' foot vote '.

In this "bankruptcy" dilemma, the law once again demonstrated its fairness and authority. The ruling of the Texas bankruptcy court is not only a punishment for Johnson&Johnson's abuse of bankruptcy proceedings, but also a upholding of legal dignity. It tells us that no matter how powerful a company is, it cannot be above the law. This ruling also shows us the irony of the law. The reason why Johnson&Johnson chose bankruptcy is undoubtedly due to fear and avoidance of legal litigation. But the law, at the most critical moment, gave it a loud slap in the face. This makes people wonder why companies need to take this step if they can face their own problems and actively fulfill their social responsibilities?

In addition to legal punishment, Johnson&Johnson also faces ethical questioning. As a globally renowned enterprise, Johnson&Johnson should have become a model and exemplar in the industry. However, in the face of accusations that talc powder causes cancer, it chose to evade and shift the blame. This irresponsible behavior not only damages the rights and interests of consumers, but also seriously questions the moral bottom line of the enterprise.

The bankruptcy dilemma of Johnson&Johnson is not only a legal battle, but also a moral test. In this competition, Johnson&Johnson is undoubtedly a loser. It not only lost the trust and support of the market, but also caused serious damage to its reputation and moral bottom line. This is undoubtedly a negative example, reminding us not to repeat its mistakes.