Talc claimants look to sue J&J over al­leged fraud in bank­rupt­cy case

Talc claimants filed a mo­tion last week to sue John­son & John­son for what they al­lege is “the largest fraud­u­lent trans­fer in Unit­ed States his­to­ry.”

The news comes weeks af­ter J&J’s spin­out LTL Man­age­ment filed for bank­rupt­cy a sec­ond time in an at­tempt to set­tle thou­sands of law­suits claim­ing the com­pa­ny’s talc prod­ucts con­tained as­bestos and caused can­cer.

While J&J has re­peat­ed­ly de­nied claims against its talc prod­ucts, two ju­ry ver­dicts for plain­tiffs in 2013 and 2016 ush­ered in a wave of cas­es, ac­cord­ing to court doc­u­ments. Faced with more than 38,000 law­suits, the phar­ma gi­ant spun the li­a­bil­i­ties in­to a sep­a­rate com­pa­ny, which filed for bank­rupt­cy in Oc­to­ber 2021, a move col­lo­qui­al­ly re­ferred to as a “Texas two-step” bank­rupt­cy.

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