Bankruptcy

Judge Denies Johnson & Johnson Subsidiary’s Bankruptcy Plan, Casting Doubt on Future Talc Liability Strategies

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HOUSTON — A pivotal decision by U.S. Bankruptcy Judge Christopher Lopez has jeopardized Johnson & Johnson’s efforts to mitigate its extensive talc-related liabilities. On March 31, 2025, in the Southern District of Texas, Judge Lopez dismissed the prepackaged Chapter 11 plan of J&J’s subsidiary, Red River Talc LLC, citing multiple legal and procedural flaws, including impermissible nonconsensual non-debtor releases under the recent Supreme Court precedent set by the Purdue Pharma decision. Johnson & Johnson has faced mounting legal challenges as thousands of lawsuits claim its talcum powder products, used by millions, contain asbestos and have … Read more

Complex Legal Battle Unfolds as Johnson & Johnson Unit Faces Setback in Bankruptcy Ruling Over Talc Litigation

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Houston — A recent ruling by U.S. Bankruptcy Judge Christopher Lopez on March 31 has underscored the complexities faced by companies attempting to manage mass tort liabilities through bankruptcy, particularly under asbestos-related legal frameworks. The decision, which struck down a $9 billion talc litigation settlement proposal by Johnson & Johnson’s subsidiary, Red River Talc LLC, due to defective voting processes, has raised significant questions about the strategy companies employ to handle large-scale liability claims. Judge Lopez identified core issues in the voting process organized by Red River Talc and its parent company, Johnson & Johnson … Read more

Bankruptcy Judge Clears Path for Canoo CEO to Acquire Struggling EV Startup’s Assets Amid Controversy and Legal Battles

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Wilmington, Del. — A Delaware bankruptcy judge has cleared the path for Canoo’s CEO, Anthony Aquila, to acquire the bulk of the electric vehicle startup’s assets. The company, which has declared bankruptcy and is among a number of industry startups struggling to maintain viability, will see its remaining assets purchased for approximately $4 million in cash. Judge Brendan Shannon, after reviewing several moderate objections to the sale, stated that the sales process was just and that Aquila was the sole bidder. This transaction will allow Aquila to continue operations and serve existing clients like NASA … Read more

Supreme Court Ruling Reshapes Future of Mass Tort Bankruptcy Settlements: Purdue Pharma Case Unravels Traditional Protections for Insurers

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Washington, D.C. — In a landmark decision, the U.S. Supreme Court has issued a ruling that will reshape the landscape of bankruptcy law, particularly affecting how companies deal with mass tort liabilities through Chapter 11 bankruptcy cases. This decision notably impacts liability insurers who often resort to bankruptcy proceedings to resolve large-scale legal claims. At the center of this pivotal case is Purdue Pharma, the pharmaceutical giant behind OxyContin. This drug, marketed as a time-released painkiller, became wildly popular, turning into the most prescribed opioid in the United States. This, however, came at a steep … Read more