The U.S. Trustee Program has filed a motion to dismiss Johnson & Johnson’s latest bankruptcy filing, which aims to settle over 60,000 talc-related lawsuits. The DOJ argues that this maneuver is a bad-faith attempt to avoid billions in liability, citing the company’s history of similar tactics. This move comes after Johnson & Johnson increased its settlement offer to $9 billion, but the DOJ believes the company is seeking a third-party release to shield itself from liability.
Johnson & Johnson, through its subsidiary Red River Talc, has filed for bankruptcy for the third time to resolve thousands of lawsuits related to its talc products. This move comes after two previous bankruptcy attempts were rejected by courts. The new plan proposes a $6.5 billion settlement over 25 years to resolve 99.75% of the talc lawsuits, with support from 83% of claimants. This filing marks a significant development in the ongoing saga of Johnson & Johnson’s talc litigation.
