Court of Appeals Ruling Sets Precedent, Limiting Use of Bankruptcy for Litigation Shielding
Philadelphia, PA – The Third Circuit Court of Appeals handed down a decision today that could significantly impact future bankruptcy filings. The court ordered the dismissal of the Chapter 11 bankruptcy case filed by LTL Management LLC, an affiliate of Johnson & Johnson. LTL had filed for bankruptcy after completing a divisional merger, which left it with the responsibility of managing Johnson & Johnson’s talc liabilities. They sought bankruptcy protection along with an injunction to shield Johnson & Johnson and its other affiliates from ongoing talc litigation. However, an Official Committee of Talc Claimants and … Read more