US judge rules in favor of J&J in controversial 'Texas two-step' case
Johnson & Johnson celebrated a win in bankruptcy court on Friday, with a US judge ruling in favor of its controversial Chapter 11 filing meant to settle 38,000 lawsuits alleging its talc-based products caused cancer.
The trial stems back to a mountain of claims that J&J’s widely-used baby powder and other talc products contained asbestos and caused mesothelioma and ovarian cancer. In an attempt to dig itself out, the pharma giant spun the liabilities into a separate company called LTL Management and filed for bankruptcy back in October. But a couple of weeks ago, plaintiffs kicked off a five-day trial seeking to dismiss the bankruptcy case as misuse of the Chapter 11 system.
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