J&J bankruptcy strategy to avoid lawsuits was rejected by the court
2023.01.30 13:27
J&J bankruptcy strategy to avoid lawsuits was rejected by the court
By Ray Johnson
Budrigannews.com – (NYSE:) Johnson & Johnson a federal appeals court rejected’s plan to use bankruptcy to settle its multibillion-dollar lawsuit over claims that its talc products cause cancer on Monday, dismissing a talc subsidiary’s bankruptcy petition.
The decision of the U.S. 3rd Circuit Court of Appeals in Philadelphia spared the LTL Management unit of the company, which was facing over 38,000 legal claims related to products like baby powder.
J&J, which asserts the safety of its talc products, established and spun off LTL, transferred its talc liabilities to the unit, and declared bankruptcy.
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