Johnson & Johnson Faces Backlash as Bankruptcy Court Ruling Undermines Talc Litigation Defense
Wilmington, Delaware — Johnson & Johnson faced a significant legal loss recently, as a bankruptcy judge ruled against the company’s attempt to shield itself from thousands of lawsuits alleging that its talcum powder products lead to cancer. This defeat underscores growing challenges for corporations seeking refuge in bankruptcy courts amid rising public scrutiny over tort liabilities. The ruling came after the pharmaceutical giant had filed for bankruptcy protection under a controversial strategy known as the “Texas Two-Step.” This maneuver allowed J&J to transfer liability for its powder products to a newly created subsidiary, hoping to … Read more