Bankruptcy judge denies J&J settlement plan related to baby powder containing talc [View all]
Source: ABC News/AP
April 1, 2025, 8:26 AM
A U.S. bankruptcy court judge has denied Johnson & Johnson's settlement plan related to baby powder containing talc, providing another setback in the company's efforts to resolve the matter. This is the third bankruptcy case for a J&J company as it relates to the baby powder issue.
Red River Talc LLC, a J&J subsidiary, was seeking confirmation of a proposed prepackaged Chapter 11 bankruptcy plan that would have been one of the biggest mass tort settlements in history, if approved. Red River and J&J proposed to pay $9 billion to settle ovarian cancer and other gynecological cancer litigation claims based on talc-related products.
But Judge Christopher Lopez of the U.S. Bankruptcy Court for the Southern District of Texas, Houston division said in a court filing that J&J used a faulty voter solicitation process when dealing with personal injury claimants.
J&J said in a statement that it will not pursue an appeal, and instead will return to the civil law system “to litigate and defeat these meritless talc claims.” It will also reverse about $7 billion of a previous reserve.
Read more: https://abcnews.go.com/Business/wireStory/bankruptcy-judge-denies-jj-settlement-plan-related-baby-120367510
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