News and Insights

UPDATE: Judge Rejects J&J’s Second Attempt at Bankruptcy

U.S. Bankruptcy Judge Michael Kaplan ruled against Johnson and Johnson’s talc subsidiary, LTL, and dismissed their second attempt at bankruptcy. Judge Kaplan determined that LTL did not demonstrate sufficient financial distress to qualify for the protections offered by Chapter 11…

UPDATE: J&J’s Second Attempt at Bankruptcy and Proposed $8.9 Billion Talc Settlement

Johnson and Johnson’s first bankruptcy filing for its talc subsidiary, LTL, was dismissed, and their petition for rehearing en banc was denied by the the Third Circuit Court of Appeals. Despite this landmark ruling, J&J is again seeking Chapter 11…

Two New Asbestos Trusts Established for Victims of Asbestos Exposure

Two new asbestos trusts have been established for claims against defendants Owens-Illinois (“O-I”) and Rapid-American (“R-A”) and are now accepting claims for asbestos-related injuries such as mesothelioma, various forms of cancer, pleural disease, and asbestosis. The newly established Trusts have…

Third U.S. Circuit Court of Appeals Rejects J&J’s “Texas Two-Step” Strategy

On January 30, 2023, the Third Circuit Court of Appeals rejected Johnson & Johnson’s (“J&J”) use of the “Texas Two-Step” bankruptcy strategy. The unanimous decision is a sharp rebuke of the emerging litigation trend in which companies facing significant mass…

Blue Cross Blue Shield Settlement Faces Delays

The Subscriber Class in the Blue Cross Blue Shield litigation received final approval of the $2.67 settlement against the Blues on August 9, 2020; however, disbursements have been delayed as this settlement faces multiple objections. Several class members have filed…

Johnson & Johnson’s Talc Bankruptcy has been Appealed to the Third Circuit

Earlier last year, Johnson & Johnson (“J&J”) created a subsidiary, LTL Management (“LTL”), which now holds all talcum powder liabilities, while only holding $2 billion in assets. The assets allocated to LTL are miniscule in comparison to the estimated $450…