• Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
Money Profit News
No Result
View All Result
Home Breaking News

U.S. court rejects J&J bankruptcy strategy for tens of thousands of talc lawsuits

by
January 30, 2023
in Breaking News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Related Posts

Nearly $100 billion in deposits pulled from banks; officials call system ‘sound and resilient’

Pro Picks: Watch all of Friday’s big stock calls on CNBC

Rocket Lab targets $50 million launch price for Neutron rocket to challenge SpaceX’s Falcon 9

Charles Schwab Stock Got Hit in the Bank Mess. Be Careful.

In this article

JNJ

Bottles of Johnson & Johnson baby powder line a drugstore shelf in New York.
Lucas Jackson | Reuters

Johnson & Johnson

The decision by the U.S. 3rd Circuit Court of Appeals in Philadelphia removed from bankruptcy the company’s LTL Management unit, which was facing more than 38,000 legal claims tied to products such as its Johnson’s baby powder.

J&J shares were down about 3% in midday trading on the New York Stock Exchange.

J&J, which maintains and reiterated on Monday that its talc products are safe, created and spun off LTL and assigned its talc liabilities to the unit and placed it in bankruptcy in 2021.

J&J had argued that bankruptcy provided a way to resolve tens of thousands of legal claims more efficiently and fairly than taking the cases to trial individually. The company pledged a funding “backstop” to ensure LTL could pay talc claimants.

The appeals court said it dismissed the LTL Chapter 11 petition because the unit was created solely to access the bankruptcy system.

“Applied here, while LTL faces substantial future talc liability, its funding backstop plainly mitigates any financial distress foreseen on its petition date,” said the 56-page opinion by the three-judge panel.

J&J said it will challenge the Third Circuit’s ruling and continue to seek a resolution of the lawsuits in bankruptcy court.

“As we have said from the beginning of this process, resolving this matter as quickly and efficiently as possible is in the best interests of claimants and all stakeholders,” J&J spokeswoman Allison Fennell said. “We continue to stand behind the safety of Johnson’s Baby Powder, which is safe, does not contain asbestos and does not cause cancer.”

J&J used a restructuring strategy known as the “Texas two-step” that was criticized by lawmakers and academics who argued the maneuver could provide a blueprint for other big companies to avoid juries in mass tort lawsuits.

Before the bankruptcy filing, J&J faced costs from $3.5 billion in verdicts and settlements, including one in which 22 women were awarded a judgment of more than $2 billion, according to bankruptcy court records.

But more than 1,500 talc lawsuits have been dismissed without J&J having to pay anything, and the majority of cases that have gone to trial have resulted in defense verdicts, mistrials or judgments for the company on appeal, according to LTL’s court filings.

The appeals court was urged to dismiss the bankruptcy petition by plaintiffs suing over the talc products. They argued one of the world’s largest healthcare companies should not be using bankruptcy to protect itself from lawsuits.

The cancer victims asked the appeals court to overrule a New Jersey bankruptcy judge who had allowed LTL’s bankruptcy to continue. LTL’s bankruptcy filing automatically stopped lawsuits from proceeding against it, and U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey ruled in February that LTL’s bankruptcy should also stop talc lawsuits from proceeding against parent company J&J.

Kaplan said the bankruptcy court is better equipped to handle mass tort litigation than other courts.

Next Post

Medicare users still have time to change, drop 2023 Advantage Plan coverage. What to know

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Popular Posts

Breaking News

Rocket Lab targets $50 million launch price for Neutron rocket to challenge SpaceX’s Falcon 9

by
March 24, 2023
0

In this article RKLB Follow your favorite stocksCREATE FREE ACCOUNT Rocket Lab Rocket Lab is building a bigger, reusable launch...

Read more

Rocket Lab targets $50 million launch price for Neutron rocket to challenge SpaceX’s Falcon 9

Pro Picks: Watch all of Friday’s big stock calls on CNBC

Nearly $100 billion in deposits pulled from banks; officials call system ‘sound and resilient’

Charles Schwab Stock Got Hit in the Bank Mess. Be Careful.

Hotels: Occupancy Rate Down 2.5% Compared to Same Week in 2019

Bank fears will likely lead to even more market volatility in the week ahead

Load More

All rights reserved by www.moneyprofitnews.com

  • Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

moneyprofitnews