Judge Granted Motion to Dismiss Johnson & Johnson’s Second Bankruptcy Petition
Recently, in an important ruling for plaintiffs, a bankruptcy judge rejected Johnson & Johnson’s ploy to restrict the talc-related lawsuits against it, finding that the Johnson & Johnson’s bankruptcy petition was filed in bad faith. This was the second time the company was prevented from trying to limit its own exposure and settle lawsuits that allege its talc-based products cause cancer. If you suffered from cancer due to Johnson & Johnson talc use, consult the seasoned Chicago-based lawyers of Moll Law Group. Billions have been recovered in cases with which we’ve been involved.
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Tens of thousands of women have claimed that they suffer from gynecological cancers because they used Johnson & Johnson’s talc products. They claim that Johnson & Johnson knew about the risks that attended use of its talc products, including the baby powder for which the company is famous. In order to shield itself, the company created LTL Management, a subsidiary, and asked the court to allow the subsidiary, which filed for bankruptcy, to be able to pay $8.9 billion in order to resolve all the lawsuits against Johnson & Johnson.
Judge Michael Kaplan of the United States Bankruptcy Court for the District of New Jersey ruled for dismissal of the bankruptcy case because, he reasoned, the plaintiffs’ lawsuits don’t place the company in imminent financial distress. During after-hours trading, the company’s shares dropped nearly 2%. The first bankruptcy effort was dismissed for the same reason by the United States Court of Appeals for the Third Circuit in Philadelphia. Continue reading →