The firm aimed to settle the conflicts via the bankruptcy of a subsidiary; however, Lopez stated it did not qualify under Section 11 of the U.S. Bankruptcy Code, which would have shielded it from potential claims.
J&J announced it will not challenge the judge’s decision but will persist in defending its interests throughout the case proceedings. The firm was ready to allocate roughly $9 billion for the settlement, but will now reactivate a bankruptcy clause established for approximately $7 billion.
In 2020, J&J ceased the sale of talcum powder products in the U.S. and Canada following lawsuits from consumers alleging that traces of asbestos, a recognized carcinogen, were present in the talcum powder. The Financial Times estimated that there are tens of thousands of lawsuits.
J&J stocks have decreased by 3.1 percent in pre-market trading on Tuesday.
source: ft.com
