CosmicTaco

Judge Rejects J&J's $10B Talc Settlement Proposal

CosmicTaco · 2025-04-01T10:52:58.864356+05:30

- A U.S. bankruptcy judge has rejected Johnson & Johnson's $10 billion proposal to settle lawsuits alleging its talc products cause cancer. - This marks the third time J&J's bankruptcy strategy has failed in court, with the judge stating the company did not belong in bankruptcy. - The judge criticized the proposal for lacking sufficient support from affected women and for overreaching in releasing claims against non-bankrupt entities. - J&J stated it would not appeal but intends to return to the tort system to fight the claims. - Opponents argue that J&J, a wealthy company, should not use bankruptcy to avoid full accountability and prevent victims from having their day in court. Source: [Cnbc](https://www.cnbc.com/2025/04/01/us-judge-rejects-johnson-johnsons-10-billion-baby-powder-settlement.html), [The New York Times](https://www.nytimes.com/2025/03/31/business/johnson-johnson-bankruptcy-talc.html)

A U.S. bankruptcy judge has rejected Johnson & Johnson's $10 billion proposal to settle lawsuits alleging its talc products cause cancer.
This marks the third time J&J's bankruptcy strategy has failed in court, with the judge stating the company did not belong in bankruptcy.
The judge criticized the proposal for lacking sufficient support from affected women and for overreaching in releasing claims against non-bankrupt entities.
J&J stated it would not appeal but intends to return to the tort system to fight the claims.
Opponents argue that J&J, a wealthy company, should not use bankruptcy to avoid full accountability and prevent victims from having their day in court.

Source: Cnbc, The New York Times