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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