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Court ruling could bring back corporate inversions

Pfizer is taking Johnson & Johnson to court. Photo: Mark Lennihan / AP

A Texas district court on Friday struck down an Obama-era Treasury Department rule that restricted corporate inversions, and the Trump-era Treasury Department is mum on its next moves.

Why it matters: Corporate inversions involve U.S. companies moving overseas for tax purposes, without necessarily moving either their top executives or employee base. The issue came to a head when New York-based Pfizer tried to invert in a $160 billion deal with "Ireland-based" Allergan, which was ultimately scuttled by regulations that the Texas court just struck down.