Why Johnson & Johnson Stock Is Moving Higher After Hours

Johnson & Johnson JNJ shares are trading higher in Tuesday's after-hours session after the company's subsidiary LTL Management re-filed for bankruptcy to resolve all talc-based baby powder claims.

What To Know: Johnson & Johnson stopped selling talc-based baby powder after being met with thousands of lawsuits claiming its talc products caused cancer. The company spun off LTL and filed an initial bankruptcy in October 2021, agreeing to pay $2 billion to resolve claims.

Johnson & Johnson has now re-filed and agreed to contribute up to $8.9 billion over 25 years to resolve all the current and future talc claims, which is an increase of $6.9 billion over the previously committed amount.

The JNJ subsidiary also noted that it had secured commitments from over 60,000 current claimants to support a global resolution on the aforementioned terms.

"The Company continues to believe that these claims are specious and lack scientific merit. However, as the Bankruptcy Court recognized, resolving these cases in the tort system would take decades and impose significant costs on LTL and the system," said Erik Haas, Worldwide Vice President of Litigation at Johnson & Johnson.

"Resolving this matter through the proposed reorganization plan is both more equitable and more efficient, allows claimants to be compensated in a timely manner."

See Also: This Is What Whales Are Betting On Johnson & Johnson

Johnson & Johnson is scheduled to report first-quarter results on April 18. The company is expected to report earnings of $2.52 per share on quarterly revenue of $23.67 billion, according to Benzinga Pro.

JNJ Price Action: Johnson & Johnson shares were up 3.02% after hours at $163.25 at the time of writing.

Photo: Mike Mozart from Flickr.