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 bankruptcy.
Earlier this year, the Third Circuit Court of Appeals dismissed LTL’s first bankruptcy filing for the very same reason. Here, Judge Kaplan’s determination echoed the Third Circuit’s opinion, writing “this Court smells smoke, but does not see the fire.” According to Johnson & Johnson, LTL will quickly appeal this ruling.
Shelby Roden filed one of the first federal talc lawsuits against J&J and will continue to monitor the ongoing litigation alleging claims related to ovarian cancer. If you or a family member have been diagnosed with ovarian cancer, please contact our office at 205-933-8383 for a free consultation.