US Judge Allows Johnson & Johnson To Split Talc Powder Liabilities Into New Company

A federal judge has allowed Johnson & Johnson JNJ to offload liabilities stemming from baby powder lawsuits. US bankruptcy judge Laurie Selber Silverstein made the ruling Thursday in Delaware, Reuters reported.
JNJ will now be able to use a Texas “divisive merger” law, which allows a company to split into two entities and used by other companies that face asbestos litigation.
Several patients who say that its baby powder and other talc products had asbestos and caused cancer have sued J&J. Plaintiffs include women with ovarian cancer and others battling mesothelioma.
There is no safe level of exposure to asbestos acknowledged by the WHO. Even just a small amount of exposure could trigger cancer years down the line.
Related Content: US House Panel Asks JNJ For Documents Over Talc Liabilities Bankruptcy Plan
In July, J&J said in a statement to Reuters that the company had not yet decided whether it will continue to split the company up into two.
Price Action: JNJ stock is down 0.16% at $173.02 during the market session on the last check Friday.