J&J spin­out los­es bid to de­lay talc bank­rupt­cy case as it heads to Supreme Court

Thou­sands of pend­ing law­suits al­leg­ing J&J’s talc-based prod­ucts caused can­cer may now pro­ceed in state and fed­er­al courts af­ter a judge ruled against an at­tempt to keep the li­a­bil­i­ties in bank­rupt­cy.

The rul­ing comes months af­ter a fed­er­al ap­peals court called for a re­jec­tion of the com­pa­ny’s con­tro­ver­sial bid to spin its talc li­a­bil­i­ties in­to a sep­a­rate com­pa­ny called LTL Man­age­ment and file for bank­rupt­cy as a way of set­tling mount­ing law­suits. LTL said it would take the is­sue to the Supreme Court, and re­quest­ed a stay un­til then.

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