On this photograph representation, a container of Johnson and Johnson child powder is displayed on April 05, 2023 in San Anselmo, California.
Justin Sullivan | Getty Photographs
A federal chapter pass judgement on on Friday rejected Johnson & Johnson’s 2d try to unravel tens of hundreds of court cases alleging the corporate’s talc child powder and different talc-based merchandise brought about most cancers.
J&J in 2021 offloaded the ones talc liabilities into a brand new subsidiary, LTL Control, and instantly filed for Bankruptcy 11 chapter protections.
Pass judgement on Michael Kaplan in Trenton, New Jersey, mentioned in an opinion that LTL Control’s 2d chapter will have to be brushed aside for the reason that subsidiary used to be no longer in “approaching” or “rapid monetary misery.” A U.S. appeals court docket in April brushed aside the primary chapter strive over the similar reason why.
The verdict jeopardizes J&J’s proposed $8.9 billion agreement that may prevent new court cases from being filed. The corporate in the past mentioned greater than 60,000 claimants have already dedicated to balloting in choose of the plan.
“LTL commenced its chapter case in excellent religion and in strict compliance with the Chapter Code,” J&J mentioned in a commentary.
“The Chapter Code does no longer require a industry to be engulfed in ‘flames’ to hunt a reorganization supported via nearly all of claimants,” mentioned Erik Haas, J&J’s international vp of litigation within the commentary.
J&J contends that analysis and medical proof demonstrates that its talc merchandise stay secure.
