J&J is not "freed from the shackles of any liability", because it is still liable to its own subsidiary for the talc lawsuit claims, up to the full value of J&J itself (the parent company).
The decision not to cut dividends in the face of an earnings shock is a pretty common one and not generally a sign of an executive team attempting to enrich themselves. It's more of a sign to shareholders that the executive team has faith in the robustness of the business, which helps if the goal is to survive the present difficulties.
It is a reality in some licensed industries (eg banking)in Europe