Johnson & Johnson's
J&J subsidiary, LTL Management, is attempting to resolve the lawsuits through bankruptcy for the second time.
The lawsuits allege that J&J's baby powder and other talc products contained asbestos, leading to mesothelioma, ovarian, and other cancers.
LTL Management's initial bankruptcy attempt was dismissed in April after an appeals court ruled that the subsidiary was not in sufficient financial distress for bankruptcy protection.
The second bankruptcy filing by LTL claims to have garnered more support from plaintiffs for a comprehensive settlement regarding current and future lawsuits, Reuters reported.
Lawyers representing cancer victims and the U.S. Justice Department's bankruptcy watchdog have called for LTL's second bankruptcy filing to be dismissed, citing it as an abuse of U.S. bankruptcy law.
Attorneys opposing J&J's settlement argue that the company has created an "illusion" of support by striking deals with plaintiffs' lawyers who signed up many clients without filing any lawsuits against J&J.
Kaplan has ruled that the second bankruptcy does not fully halt the talc litigation, allowing one plaintiff's case to go to trial and new complaints to be filed against LTL and J&J, given that no other trials are scheduled without bankruptcy court permission.
As a part of the $8.9 billion effort to settle claims related to talc products, Johnson & Johnson earmarked $400 million to end claims alleging it violated state unfair business practices and consumer protection laws by misleading consumers about the safety of its talc products.
Price Action: JNJ shares are down 0.06% at $163.53 on the last check Tuesday.
