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J&J’s Strategy on Cancer Suits Questioned by Appeals Court

  • Court to decide if J&J can use bankruptcy to halt 40,000 suits
  • talc-cancer victims argue J&J wrongly put unit into bankruptcy
Johnson & Johnson baby powder

Johnson & Johnson baby powder

Photographer: Justin Sullivan/Getty Images

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Johnson & Johnson faced tough questions from federal appellate judges about whether placing a unit in bankruptcy to deal with more than 40,000 cancer lawsuits over its baby powder was legitimate.

The three-judge panel in Philadelphia heard arguments about LTL Management’s Chapter 11 case Monday and will decide later whether the case was filed in good faith, or should be thrown out because J&J and its units don’t face immediate financial distress. Should J&J and LTL lose, juries would once again hear talc cancer claims, leaving J&J facing legal and financial uncertainties as it fights individual cases around the country.