Johnson & Johnson’s proposed $8.9 billion settlement of thousands of lawsuits alleging that its talc products cause cancer faces a crucial hurdle this week as a U.S. bankruptcy judge in New Jersey considers whether or not a J&J subsidiary may resolve them by filing for bankruptcy a second time.
J&J subsidiary LTL Management’s first attempt to do that was dismissed in April after a U.S. appeals court ruled that it was not in sufficient financial distress to be eligible for bankruptcy protection.
LTL quickly filed for bankruptcy again, arguing that its second effort has won more support from plaintiffs for a comprehensive settlement of current and future lawsuits alleging that J&J’s baby powder and other talc products sometimes contained asbestos and caused mesothelioma, ovarian, and other cancers. J&J has said its talc products are safe and do not contain asbestos….