Justice Department's Trustee Program Alleges Johnson & Johnson's Talc Litigation Bankruptcy Bid Is Bad-Faith Tactic To Avoid Liability

The U.S. Trustee Program, a unit of the Department of Justice (DOJ) overseeing bankruptcy cases, has filed a motion in federal bankruptcy court in Houston to dismiss a Chapter 11 filing by a subsidiary of Johnson & Johnson (NYSE:JNJ).

The filing aims to settle more than 60,000 talc-related lawsuits, marking J&J's third attempt to pursue this strategy in as many years.

In September, Johnson & Johnson reportedly increased its settlement offer by $1 billion, now totaling about $9 billion, to address claims that its talc baby powder caused gynecological cancer.

The DOJ argues that Johnson & Johnson's latest bankruptcy maneuver is a bad-faith ...