Johnson & Johnson Legal Representatives Exploring Putting Talc Lawsuits Into Subsidiary For Bankruptcy Filing: Reuters

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  • Johnson & Johnson JNJ is exploring a plan to offload liabilities from its Baby Powder litigation into a newly created business that would then seek bankruptcy protection, Reuters reports.
  • During settlement discussions, one of the Company's attorneys has told plaintiffs' lawyers that J&J could pursue the bankruptcy plan, resulting in lower payouts for cases that do not settle beforehand, some of the people said.
  • According to the report, J&J has not yet decided whether to pursue the bankruptcy plan. It is not clear whether the Company has retained restructuring lawyers to help explore the bankruptcy plan.
  • The Company faces legal actions from several plaintiffs alleging its Baby Powder and other talc products contained asbestos and caused cancer.
  • The plaintiffs include women who have ovarian cancer and others battling mesothelioma.
  • Attorneys representing the plaintiffs are denouncing the Company over reports it is considering bankruptcy to avoid financial responsibility. 
  • Last month, the U.S. Supreme Court denied hearing JNJ's appeal of a $2.1 billion verdict from a 2018 trial.
  • Last week, Johnson & Johnson had to recall five of its sunscreen products after some samples were found to contain low levels of benzene, a chemical that can cause cancer with repeated exposure.
  • Price Action: JNJ shares are down 0.81% at $166.74 premarket on the last check Monday.
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Posted In: BiotechNewsHealth CareLegalGeneralBriefsReuters
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