Johnson & Johnson can’t invoke bankruptcy to stop cancer lawsuits, court says – By Aaron Katersky and Max Zahn (ABC News) / Jan 30, 2023
The company faces 38,000 lawsuits that allege its baby powder causes cancer.
Johnson & Johnson cannot use bankruptcy court to resolve civil lawsuits that claim its iconic baby powder caused cancer, a federal appeals court ruled Monday.
The opinion foiled Johnson & Johnson’s plan to shift onto a new entity, LTL Management LLC, some 38,000 lawsuits that alleged the talc in Johnson’s Baby Powder has caused ovarian cancer and mesothelioma.
LTL Management filed for chapter 11 protection in hopes of resolving the claims that have already cost Johnson & Johnson $1 billion.
The pursuit of bankruptcy protection by LTL Management does not meet the bankruptcy code’s intended purpose, since LTL Management is not in financial distress, the court opinion said.
