- A House Oversight subcommittee sent a letter to Johnson & Johnson's (NYSE:JNJ) CEO Alex Gorsky asking for documents and information on any company plans to place a subsidiary into bankruptcy over talc liabilities, Reuters reported.
- Democrat Raja Krishnamoorthi, chairman of the U.S. House of Representatives Committee on Oversight and Reform's subcommittee on economic and consumer policy, wrote that the panel is trying to learn how J&J's plans may affect people who have said the company's baby powder harmed them.
- Krishnamoorthi also asked J&J to turn over documents showing how much funding it would provide to the new entity. The level of funding could determine payouts for victims.
- Earlier this month, JNJ reportedly explored a plan to offload liabilities it faces from baby powder litigation into a new company, which would then file for bankruptcy.
- Separately, plaintiff attorneys filed a fresh legal challenge intended to prevent J&J from pursuing bankruptcy for its baby powder liabilities.
- According to court documents filed on Wednesday, they asked a Delaware judge overseeing a separate bankruptcy involving J&J's talc supplier, Imerys, to prohibit the maneuver, arguing it would evade obligations J&J has to Imerys.
- Price Action: JNJ shares are down 0.10% at $172 during the market session on the last check Thursday.
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