Judge rejects J&J attempt to push talc lawsuits to bankruptcy court

Johnson & Johnson (JNJ) plans to challenge the ruling issued today.

The Third U.S. Circuit Court of Appeals on Monday dismissed the chapter 11 case of J&J subsidiary LTL Management LLC, which the consumer-health-goods giant created in 2021 to move to bankruptcy court the mass lawsuits alleging its talc-based baby powder products caused cancer.

The unanimous ruling was a rebuke to an emerging corporate restructuring strategy in which companies facing mass tort litigation invoke a Texas law to create a new subsidiary with minimal business operations and make it responsible for tort liabilities before putting that subsidiary in bankruptcy.

J&J Can’t Use Bankruptcy to Resolve Talc-Injury Lawsuits, Appeals Court Rules – WSJ