J&J may file for bankruptcy for talc products sources
Seven people familiar with the matter said Johnson & Johnson could split into two companies to offload its baby powder liabilities and file for bankruptcy protection. Some sources told Reuters that only J&J could apply a Texan “divisional merger” law that allows one company to split two companies. One of them would be their baby powder and other talc products that tens of thousands of plaintiffs claim contain asbestos and cause cancer. J & J’s newly split business could then file for bankruptcy, which can result in lower payouts for unresolved cases. Plaintiffs’ attorneys see the move as a move that bypasses potentially expensive settlements, while companies see it as a way to open many lawsuits to restrict a court. In a statement to Reuters, a J&J talc products subsidiary said the company had “made no decision”. other course of action in this lawsuit other than continuing to defend Talk’s safety. ”Some sources said J&J may eventually abandon the idea altogether 018 Reuters research found that J&J knew for decades that a known carcinogen, asbestos, was in its baby powder and others Talc products lurk. The company stopped selling baby powder in the US and Canada last May, but claims its products are safe and contain asbestos. It is now facing legal action from more than 30,000 plaintiffs, including women battling ovarian cancer and mesothelioma.