J&J unit files for second bankruptcy to pursue $8.9 billion talc settlement
2023.04.04 17:11
© Reuters. FILE PHOTO: A bottle of Johnson and Johnson Baby Powder is seen in a photo illustration taken in New York, February 24, 2016. REUTERS/Shannon Stapleton/Illustration
By Dietrich Knauth
(Reuters) -A Johnson & Johnson (NYSE:) subsidiary filed for bankruptcy a second time on Tuesday, seeking to complete a $8.9 billion settlement of lawsuits alleging that its baby powder and other talc products cause cancer.
J&J subsidiary LTL Management’s first bankruptcy was dismissed earlier on Tuesday, after an appellate court ruled that the neither J&J not LTL were in the type of “financial distress” that made them eligible for bankruptcy.
The new bankruptcy filing includes a proposal to pay $8.9 billion over 25 years to resolve all current and future talc claims, according to J&J. The settlement is supported by over 60,000 current claimants, J&J said in a statement.
J&J said that its settlement is not an admission of wrongdoing, nor an indication that the company has changed its longstanding position that its talcum powder products are safe.
