After two failed attempts for bankruptcy protection, Johnson & Johnson faces at least 51,300 cases due to talc-related cancer claims. Earlier this year, Chris Schott, a JPMorgan Chase & Co. analyst, estimated J&J’s total talc liability at between $8 billion and $10 billion.…
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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…
Read More UPDATE: Judge Rejects J&J’s Second Attempt at Bankruptcy
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…
Read More UPDATE: J&J’s Second Attempt at Bankruptcy and Proposed $8.9 Billion Talc Settlement
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…
Read More Third U.S. Circuit Court of Appeals Rejects J&J’s “Texas Two-Step” Strategy
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…
Read More Johnson & Johnson’s Talc Bankruptcy has been Appealed to the Third Circuit