A Johnson & Johnson subsidiary filed for bankruptcy protection for the third time to resolve over 60,000 lawsuits alleging its talc products caused cancer. The subsidiary's latest Chapter 11 plan includes an $8 billion settlement to claimants over 25 years, surpassing the previous proposal. The plan, backed by over 80% of current claimants, aims to end all current and future ovarian cancer claims. J&J maintains its products are safe. However, its "Texas two-step" bankruptcy strategy, which involves shifting liability to a new subsidiary filing for Chapter 11 to avoid the company's own bankruptcy, faces ongoing legal challenges.
Category
🗞
NewsTranscript
00:00It's Benzinga, and here's what's on the block.
00:02A Johnson & Johnson subsidiary filed for bankruptcy protection for the third time to resolve over
00:0860,000 lawsuits alleging its talc products caused cancer.
00:12The subsidiary's latest Chapter 11 plan includes an $8 billion settlement to claimants over
00:1625 years, surpassing the previous proposal.
00:20The plan, backed by over 80% of current claimants, aims to end all current and future ovarian
00:25cancer claims.
00:26J&J maintains its products are safe.
00:29However, its Texas two-step bankruptcy strategy, which involves shifting liability to a new
00:34subsidiary filing for Chapter 11 to avoid the company's own bankruptcy, faces ongoing
00:39legal challenges.
00:40For all things money, visit Benzinga.com.