- A US bankruptcy judge has temporarily stayed New Mexico and Mississippi from filing charges Johnson&Johnson JNJ misleading consumers about the safety of its talc products.
- The judge said an appeals court is considering the bankruptcy of J&J’s subsidiary LTL Management to settle claims related to its carcinogenic talc products, Reuters reported.
- JNJ formed LTL in October 2021 to cede its talc debt to the entity and later announced bankruptcy for the same.
- In August, Johnson&Johnson said it plans to stop selling its legacy talc-based baby powder products worldwide in 2023.
- The judge said he would reconsider whether the states’ lawsuits could proceed at a hearing in December.
- The restructuring strategy, dubbed the “Texas Two-Step,” has stayed about 38,000 individual lawsuits the pharmaceutical giant has faced alleging that its talc-based powder contains carcinogens, the report added.
- New Mexico and Mississippi had argued that the February order only blocked private prosecutors’ lawsuits and that Kaplan had no authority to block states.
- In April, the US bankruptcy judge denied J&J’s motion to block a lawsuit accusing the company of hiding evidence of its industrial talc activities workers exposed to asbestos.
- Price promotion: JNJ shares are down 0.15% to $165.37 on the latest check Wednesday.
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