"J&J Can't Resolve Mass Talc Lawsuits Through Subsidiary's Bankruptcy, Judge Rules", 31 July 2023

Today, U.S. Chief Bankruptcy Judge Michael Kaplan dismissed Johnson & Johnson (J&J) subsidiary LTL Management LLC's second bankruptcy petition... The ruling has thwarted J&J's plan to wield Chapter 11 as a means for resolving around 50,000 lawsuits alleging the company's talc products caused claimants to develop ovarian cancer.

The judge's opinion stated:

"Simply put, the Debtor does not meet the more exacting gateway requirement implemented by the Circuit with respect to 'good faith' under 11 U.S.C. §1112(b), which would allow LTL to take advantage of the tools available under the Bankruptcy Code to resolve its present and future talc liabilities..."

LPR Attorney Cameron Stephenson, who is actively involved in the national talc litigation, commented on how the court's decision translates to corporate accountability...

MDL 2738 [Talcum Powder Lawsuits] comprises nearly 50,000 individual talcum powder lawsuits from individuals who allegedly developed ovarian cancer or mesothelioma after regular, prolonged use of Johnson’s Baby Powder and Shower to Shower body powder. The lawsuits claim that Johnson & Johnson deceptively marketed the talc-based products for feminine hygienic use without disclosing talc’s carcinogenic properties.