A setback to JNJ strategy on the talc litigation
$Johnson & Johnson(JNJ)$ A setback to JNJ strategy on the talc litigation
• J&J created a new unit (TLT)
• assigned talc liabilities to unit
• allocated $2 B to this unit to resolve claims
• separated subsidiary (spin-off)
• filed for CH11
Judge dismissed LTL Chapter 11Bankruptcy filings typically suspend litigation in trial courts, forcing plaintiffs into often time-consuming settlement negotiations while leaving them unable to pursue their cases in the courts where they originally sued.
The decision could force J&J to fight talc lawsuits for years in trial courts. The company has a mixed record fighting the suits so far. While the firm was hit with major judgments in some cases before filing bankruptcy, more than 1,500 talc lawsuits have been dismissed and the majority of cases that have gone to trial have resulted in verdicts favoring J&J, judgments for the company on appeal, or mistrials, according to its subsidiary's court filings.
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