- A federal bankruptcy judge rejected Johnson & Johnson's second attempt to resolve thousands of lawsuits claiming their talc products caused cancer. The attempt involved creating a new subsidiary, LTL Management, and filing for Chapter 11 bankruptcy protection in 2021.
- The rejection of the second bankruptcy attempt puts J&J's proposed $8.9 billion settlement in jeopardy, which aimed to halt new lawsuits related to talc products. Over 60,000 claimants were already committed to voting in favor of the settlement. However, J&J stated that LTL Management intends to appeal the decision, asserting that their talc products are safe based on research and clinical evidence.
Why it matters
The proposed settlement, which had garnered considerable support from claimants, is now uncertain, and the legal battles are likely to continue. The outcome of the appeal by LTL Management will be crucial in determining the future course of actions and financial liabilities for the company.
