Johnson & Johnson places talc liability entity into bankruptcy

The healthcare company said Thursday that a corporate affiliate holding talc-related liabilities had filed for chapter 11 protection “to resolve all claims related to cosmetic talc in a manner that is equitable to all parties, including any current and future claimants.”

The chapter 11 filing makes J&J the latest company to turn to chapter 11 as a mechanism to settle large numbers of lawsuits over defective products or other harms. Victims’ lawyers had criticized J&J for exploring a bankruptcy over talc, saying that chapter 11 wasn’t meant to help healthy companies avoid accountability.

Johnson & Johnson Places Talc Injury Claims in Bankruptcy – WSJ