News >J&J Exploring Putting Talc Liabilities Into Bankruptcy
J&J Exploring Putting Talc Liabilities Into Bankruptcy
According to Reuters, J & J would transfer all of its potential liability in TalkTalk litigation to the new company if it filed for bankruptcy protection.
A legal representative for Johnson & Johnson said there are no settlement talks over its Talcum baby powder but the company is considering filing for bankruptcy as part of a strategy to settle thousands of claims related to its Talcum-based ovarian cancer powder, according to people familiar with the matter.
Johnson and Johnson Consumer, Inc. have not chosen a specific course of action in the lawsuit, except to continue to protect Talk's safety and pursue litigation through the unapproved process to prove that it is a subsidiary that houses the company's Talc products, said in a statement to Reuters.
Johnson & Johnson Lawsuit:
Johnson & Johnson now faces an estimated 30,000 lawsuits in U.S. courts, most of which the asbestos-contaminated products for cancer and other medical problems blame asbestos products.
So far the company has settled more than 1,000 lawsuits over asbestos and talc in 2020. According to reports from The Wall Street Journal and CNBC, the pharmaceutical giant is rethinking its debt to a new company or filing for bankruptcy.
In 2020, the company announced it would stop selling its iconic talcum-based baby powder in the US and Canada, citing failing consumer demand and misinformation about the product's safety.
AThe subsidiary has the ability to help resolve thousands of pending lawsuits related to Talcum baby powder for ovarian cancer and mesothelioma.
In settlement talks with at least one health care conglomerate, plaintiffs were told that Johnson & Johnson was pursuing a plan to reduce liabilities from the widespread baby powder litigation by creating a company that would seek bankruptcy protection.
In the Talks, the health care group's lawyers told the plaintiffs that J & J was pursuing a bankruptcy plan that would result in lower payouts if the case is not settled, it said.
J & J is considering using a mechanism to file for bankruptcy under Texass' divisive merger law, which allows companies to split into two entities, it said. If the company splits up and creates a new entity to house liabilities from the Talk business, a bankruptcy filing could end the litigation, it said.
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