In this photograph illustration, a container of Johnson and Johnson child powder is displayed on April 05, 2023 in San Anselmo, California.
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A federal bankruptcy choose on Friday rejected Johnson & Johnson‘s second try to resolve tens of 1000’s of lawsuits alleging the corporate’s talc baby powder and other talc-based products prompted cancer.
J&J in 2021 offloaded these talc liabilities into a new subsidiary, LTL Management, and instantly filed for Chapter 11 bankruptcy protections.
Judge Michael Kaplan in Trenton, New Jersey, mentioned in an opinion that LTL Management’s second bankruptcy have to be dismissed as a result of the subsidiary was not in “imminent” or “quick monetary misery.” A U.S. appeals courtroom in April dismissed the primary bankruptcy try over the identical motive.
The choice jeopardizes J&J’s proposed $8.9 billion settlement that may cease new lawsuits from being filed. The firm beforehand mentioned greater than 60,000 claimants have already dedicated to voting in favor of the plan.
J&J mentioned LTL Management intends to attraction the choice.
“LTL commenced its bankruptcy case in good religion and in strict compliance with the Bankruptcy Code,” the corporate mentioned in a assertion.
“The Bankruptcy Code doesn’t require a enterprise to be engulfed in ‘flames’ to search a reorganization supported by the overwhelming majority of claimants,” added Erik Haas, J&J’s worldwide vp of litigation.
J&J contends that analysis and medical proof demonstrates that its talc merchandise stay secure.