[teraflop]

> For one thing, this approach allows J&J to determine their maximum liability by only spinning off a certain amount to the subsidiary.

Except that's not what they did. As the article explains, under the J&J agreement the "maximum liability" of the parent to the subsidiary was defined as the entire cash value of the parent.

[flagrant_taco]

That extra complexity adds room for plenty of loop holes.

For example, by avoiding bankruptcy any existing liabilities aren't pooled and paid out proportionately along with the lawsuit proceedings. There is also nothing stopping the parent company from moving around funds to limit its "entire cash value".