Legal
J&J Unit Seeks Chapter 11 Bankruptcy for Third Time Over Baby Powder Suits
- Some 83% of plaintiffs agreed to J&J’s about $8 billion offer
- Company hopes to put years of litigation to rest with deal
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Johnson & Johnson said it received overwhelming support for a roughly $8 billion settlement of claims that its talc-based baby powder caused cancer, a key step as the company makes its third attempt to resolve thousands of lawsuits in bankruptcy court.
The company’s subsidiary, Red River Talc LLC, filed for Chapter 11 bankruptcy in Texas after 83% of claimants accepted J&J’s settlement offer. Those votes are still subject to challenge in the bankruptcy case by victims who object to the deal.