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The controversial maneuver, generally known as a Texas two-stage, has long been used by other companies, which includes Johnson & Johnson, that have tried to address their mass tort liabilities in the bankruptcy of the subsidiary.
"The lawyer's prior self-discipline report demonstrated a record of acts of dishonesty, including the indisputable fact that in 2004 he misled the Court of Appeal for Ontario by stating that he had the consent of opposing counsel into the order he was seeking, when in fact he didn't," the ruling states.
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