This tactic wasn't as bad as you imply. J&J put the greater of $61.5 billion or the value of its consumer division (as determined when the paperwork was done) in LTL to cover claims and added itself as a creditor in last place. The idea was they would get back any value less than that after a result of the bankruptcy.
In this case, they would have recovered over $50 billion from the bankrupt company after the suit was paid off (assuming this deal covers all parties).
In this case, they would have recovered over $50 billion from the bankrupt company after the suit was paid off (assuming this deal covers all parties).