Court Rejects Johnson & Johnson ’s Bankruptcy Plan for Talc Lawsuits

A federal appeals court last week rejected an LTL Management bankruptcy filing, delivering a blow to the company’s plan to resolve thousands of talc lawsuits. The company is a Johnson & Johnson subsidiary. The ruling effectively found the company’s bankruptcy was not filed in good faith. J&J said on Feb. 6 that it plans to appeal the U.S. Court of Appeals for the Third Circuit’s ruling.  “LTL initiated this process in good faith and our objective has always been to equitably resolve claims related to the company’s cosmetic talc litigation,” J&J wrote.  If denied on appeal, Johnson & Johnson will face more than 38,000 ovarian cancer talc lawsuits and more than 400 mesothelioma claims in the civil court system. It could take a couple of months for that process to begin, said attorney Lisa Busch, managing attorney of the asbestos bankruptcy department at Weitz & Luxenberg.  “There isn’t specifically a date certain yet. We hope in the next 30 to 60 days that we can get back to business as usual,” Busch told Asbestos.com.  The lawsuits claim Johnson & Johnson’s asbestos-contaminated talcum powder products caused mesothelioma and ovarian cancer. J&J Bankruptcy Strategy Backfires The appeals court ruled that only companies in financial distress may file for bankruptcy. Johnson & Johnson, valued at more than $400 billion, said its subsidiary filed for bankruptcy in good faith.  ...
Source: Asbestos and Mesothelioma News - Category: Environmental Health Authors: Tags: Asbestos Exposure Legal Mesothelioma Source Type: news