US Judge Rejects Another Johnson & Johnson Attempt To Use Bankruptcy For Talc Cancer Claims

A U.S. bankruptcy court in Texas has rejected Johnson & Johnson’s (NYSE:JNJ) subsidiary Red River Talc's request to approve its prepackaged bankruptcy plan. The company said the plan included one of the largest settlements in mass tort bankruptcy history and was backed by most claimants.

In October 2024, the  Department of Justice’s unit argued that Johnson & Johnson’s latest bankruptcy maneuver is a bad-faith attempt to shield itself from billions in personal injury claims without actually entering bankruptcy.

Instead of appealing the decision, Red River Talc will return to the court system to fight what it calls baseless talc-related lawsuits.

The company claims that disclosures during the bankruptcy process confirmed the litigation is driven by plaintiff lawyers, based on flawed science and funded by outside investors, including foreign sovereign ...

https://www.benzinga.com/general/biotech/25/04/44586129/us-judge-rejects-another-johnson-johnson-attempt-to-use-bankruptcy-for-talc-cancer-claims