Johnson & Johnson Weighs Options for Talc Liabilities

Johnson &Johnson is considering the creation of a new subsidiary to absorb its widespread asbestos liabilities, according to reports in The Wall Street Journal and other news outlets. The J&J subsidiary would then declare Chapter 11 bankruptcy, potentially saving the multinational corporation billions of dollars. Reuters News Service also reported the subsidiary possibility, citing unnamed personal injury attorneys who learned of the option while negotiating their current claims with J&J officials. A spokesperson for Johnson &Johnson would not confirm the reports.  “Johnson &Johnson Consumer Inc. has not decided on any particular course of action in this litigation other than to continue to defend the safety of talc and litigate these cases in the tort system, as the pending trials demonstrate,” the company said in a statement. The controversial legal strategy could help settle thousands of pending claims linking J&J’s iconic talc-based baby powder to ovarian cancer and malignant mesothelioma. For plaintiffs, the move would likely result in protracted bankruptcy proceedings and reduced compensation for those who have not settled previously. Much would depend on how the subsidiary was funded. If it becomes a reality, plaintiff’s lawyers likely would challenge the maneuver vigorously in court. Number of J&J Lawsuits Growing Johnson &Johnson is currently facing an estimated 30,000 lawsuits in U.S. courts to...
Source: Asbestos and Mesothelioma News - Category: Environmental Health Authors: Source Type: news

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