US House Panel Asks JNJ For Documents Over Talc Liabilities Bankruptcy Plan

A House Oversight subcommittee sent a letter to Johnson & Johnson's JNJ CEO Alex Gorsky asking for documents and information on any company plans to place a subsidiary into bankruptcy over talc liabilities, Reuters reported.
Democrat Raja Krishnamoorthi, chairman of the U.S. House of Representatives Committee on Oversight and Reform's subcommittee on economic and consumer policy, wrote that the panel is trying to learn how J&J's plans may affect people who have said the company's baby powder harmed them.
Krishnamoorthi also asked J&J to turn over documents showing how much funding it would provide to the new entity. The level of funding could determine payouts for victims.
Earlier this month, JNJ reportedly explored a plan to offload liabilities it faces from baby powder litigation into a new company, which would then file for bankruptcy.
Separately, plaintiff attorneys filed a fresh legal challenge intended to prevent J&J from pursuing bankruptcy for its baby powder liabilities.
According to court documents filed on Wednesday, they asked a Delaware judge overseeing a separate bankruptcy involving J&J's talc supplier, Imerys, to prohibit the maneuver, arguing it would evade obligations J&J has to Imerys.
Price Action: JNJ shares are down 0.10% at $172 during the market session on the last check Thursday.

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