- A federal bankruptcy judge Michael Kaplan temporarily held around 38,000 lawsuits alleging Johnson & Johnson's JNJ baby powder and other talc products caused cancer as a part of J&J's second attempt to settle thousands of talc cases in bankruptcy proceedings.
- In 2021, Johnson Johnson spun off its subsidiary, LTL Management, to carry its talc-related liabilities and file for Chapter 11 bankruptcy protections.
- J&J will not have to go to trial over any other talc claims during the pause, but new lawsuits can still be filed against the company, the Wall Street Journal reported. Kaplan said during the hearing that J&J has an "uphill battle" ahead.
- The report added that the freeze on jury trials would last through mid-June while LTL moves through bankruptcy, citing Judge Kaplan.
- Earlier this week, a federal appeals court in Philadelphia rejected Johnson & Johnson's use of Chapter 11 bankruptcy to offload several lawsuits.
- The company made another attempt at "resolving the litigation in bankruptcy after a federal appeals court found its first attempt improper.
- In early April, LTL Management re-filed for bankruptcy and agreed to contribute up to $8.9 billion over 25 years to resolve all the current and future talc claims.
- Johnson & Johnson's Worldwide Vice President of Litigation Erik Haas Kaplan's decision is "a win for claimants" because it brings them "one step closer" to being able to vote on the proposed settlement and believes claimants will overwhelmingly support the proposal.
- Price Action: JNJ shares are up 0.26% at $164 during the premarket session on the last check Friday.
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