- A U.S. bankruptcy judge has temporarily paused New Mexico and Mississippi from accusing Johnson & Johnson JNJ of misleading consumers about the safety of its talc products.
- The judge said an appellate court is reviewing J&J's bankruptcy of subsidiary LTL Management to resolve claims regarding its talc products causing cancer, Reuters reported.
- JNJ created LTL in October 2021 to assign its talc liabilities to the unit, and later it announced bankruptcy for the same.
- In August, Johnson & Johnson said it plans to stop selling its legacy talc-based baby-powder products globally in 2023.
- The judge said he would revisit allowing the states' lawsuits to proceed at a hearing in December.
- The restructuring strategy, dubbed "Texas two-step," paused about 38,000 individual lawsuits the pharma giant was facing alleging that its talc-based powder contains cancer-causing agents, the report added.
- New Mexico and Mississippi had argued that the February order only blocked lawsuits by private plaintiffs and that Kaplan does not have the authority to block states.
- In April, the U.S. bankruptcy judge denied J&J's bid to block a lawsuit accusing the company of hiding evidence that its industrial talc operations exposed workers to asbestos.
- Price Action: JNJ shares are down 0.15% at $165.37 on the last check Wednesday.
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