Legal

J&J Eyes Texas as Venue for Next Round of Baby Powder Fight

Company plans third bid to resolve cancer claims in bankruptcy
Texas venue seen friendlier after case blocked in New Jersey

Johnson & Johnson baby powder.
Photographer: Gabby Jones/Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Jef Feeley and Damian Garde

August 15, 2024 at 10:30 AM UTC

Updated on

August 15, 2024 at 3:23 PM UTC

This article is for subscribers only.

Johnson & Johnson was twice blocked in New Jersey from getting bankruptcy protection from one of its units to resolve billions of dollars in cancer claims tied to baby powder use. For its third try, the company is eyeing Texas, home to what are widely considered more business-friendly courts.

The third Chapter 11 bid — including a $6.5 billion settlement offer — will likely land somewhere in the Lone Star State after judges in New Jersey concluded that thousands of cancer lawsuits didn’t pose enough financial distress to justify bankruptcy protection. The company outlined its plans in public disclosures to claimants last month.