J&J Cancer Lawsuit Strategy Tossed By Bankruptcy Judge

  • Lawsuit maneuver dismissed for second time in six months
  • Company’s shares fell on the news in after-hours trading

Photographer: Scott Eells/Bloomberg

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Johnson & Johnson cannot use a unit’s bankruptcy case to press tens of thousands of cancer victims to drop their lawsuits and accept an $8.9 billion settlement, a judge ruled.

For the second time in about six months, federal courts dismissed the bankruptcy case of LTL Management. J&J created the unit to end all current and future health claims related to baby powder and other products made with talc that was allegedly tainted with a toxic substance.