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Trenton, New Jersey — Johnson & Johnson’s efforts to shield itself from talc-related lawsuits through a controversial bankruptcy strategy have met a significant hurdle. A federal judge has dismissed the company’s latest bankruptcy filing, effectively blocking its attempts to negotiate settlements for thousands of claims tied to its talc-based products. The ruling by U.S. Bankruptcy Judge Michael Kaplan underscored the challenges facing companies utilizing bankruptcy protections to manage tort liabilities, particularly in light of growing scrutiny around such practices. The ruling came after Johnson & Johnson created a subsidiary to handle talc claims, a strategy … Read more

Johnson & Johnson’s bankruptcy maneuver related to talc claims has encountered significant scrutiny, culminating in a notable court defeat that could reshape how similar cases are handled. In recent proceedings, a federal judge ruled against the company’s attempt to consolidate litigation through bankruptcy protections, marking a pivotal moment for tort claims involving consumer health products. The controversial bankruptcy strategy was part of Johnson & Johnson’s effort to manage a staggering number of lawsuits alleging that its talcum powder products contain carcinogenic substances. Thousands of plaintiffs have come forward, claiming the products resulted in serious health … Read more