Legal
J&J Loses Latest Legal Bid to Revive Talc Bankruptcy Strategy
- An appeals court backed dismissal of a J&J unit’s bankruptcy
- J&J said ruling won’t affect its unit’s third bankruptcy
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Johnson & Johnson lost its bid in a federal appeals court to revive a plan to settle tens of thousands of talc cancer lawsuits by placing a subsidiary into bankruptcy.
The ruling Thursday upheld a bankruptcy judge’s dismissal last year of the Chapter 11 case of J&J subsidiary LTL Management LLC. J&J created LTL to carry into bankruptcy all health claims related to baby powder and other J&J products made with talc allegedly tainted with toxic substances. Last year, the Philadelphia-based appeals court rejected a similar bankruptcy plan.