A U.S. judge halted all lawsuits against Johnson & Johnson over allegations that its talc formula products and baby powder contained cancer-causing asbestos, stopping any trials as the company has agreed to settle all claims for billions of dollars.
The consumer products giant offered at the beginning of April to settle all claims related to talc lawsuits for $8.9 billion, making it one of the largest consumer liability settlements in history. On April 20, U.S. Bankruptcy Judge Michael Kaplan put the litigation against J&J on hold, Reuters reported. The move grants J&J’s request to freeze cases as it is reaching a permanent settlement with current and future plaintiffs.
LTL Management, J&J’s subsidiary, filed for bankruptcy earlier this month under terms of the settlement agreement. However, the filing was the second time J&J attempted to file bankruptcy for the settlement, after “a federal appeals court’s decision in January that invalidated its first Chapter 11 filing, on the grounds the J&J unit was not in financial distress,” Reuters reported.
Kaplan’s decision on April 20 pauses 38,000 lawsuits against J&J.
See the full story below:
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."