Tuesday, October 24, 2023

J&J considers third bankruptcy attempt over talc claims

Johnson & Johnson's chief litigation lawyer said that the company is weighing the possibility of another bankruptcy filing in its attempt to deal with tens of thousands of lawsuits related to its talcum powder products.

If the healthcare giant goes ahead with the filing, it would be the third attempt to use bankruptcy as a way to handle talc litigation after it has been beaten back twice.

Temu Clearance - Free Shipping & Return Today Temu Clearance - Free Shipping & Return Today Ad Temu "Together with and the future claims representatives, we're pursuing a consensual resolution of the talc claims through another bankruptcy," Erik Haas said during J&J's Q3 earnings call Tuesday.

J&J is appealing the New Jersey Bankruptcy Court's decision in late July to deny subsidiary LTL Management's filing.

The company created the unit specifically to handle talc claims.

Current Time 0:00 / Duration 0:45 Benzinga J&J's Medical Devices and Pharmaceuticals Drive Impressive Q3 Sales Growth 0 View on Watch View on Watch "That immediate financial distress requirement, which the Third Circuit did not specifically define, is nowhere in the bankruptcy code and is contrary to the standards that are implied - employed by other circuits," he said.

"Moreover, under any reasonable interpretation of that standard, we believe the record has fully established that LTL faced immediate financial distress due to the large volume of talc claims that were asserted against it." As part of its second bankruptcy attempt, LTL offered $8.9B to settle all current and future talc claims. 

https://www.msn.com/en-us/money/companies/j-j-considers-third-bankruptcy-attempt-over-talc-claims/ar-AA1it37O

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