(News Bulletin 247) – Johnson & Johnson has announced that its subsidiary LTL Management has filed a new application in order to place itself under the protection of ‘chapter 11’, the bankruptcy law in the United States.
According to J&J, this status will allow its subsidiary to obtain approval for a reorganization plan that will ‘fairly and effectively’ resolve all claims arising from cosmetic talc litigation against the Company and its subsidiaries in North America. .
Against this backdrop, the company has agreed to contribute $8.9 billion over 25 years to resolve current and future talc claims – an increase of $6.9 billion from the $2 billion dollars previously announced in October 2021, as part of LTL’s initial bankruptcy filing.
J&J clarifies that this operation does not constitute an admission of wrongdoing, nor a change in the company’s position regarding the safety of its talcum powder products.
Finally, Johnson & Johnson and its other affiliates have not filed for bankruptcy and will therefore continue to operate as usual.
Erik Haas, Global Vice President of Litigation, Johnson & Johnson, says ‘resolving this matter through the proposed plan of reorganization is both fairer and more efficient, allows claimants to be compensated in a timely manner and enables the Company to remain focused on its commitment to have a profound and positive impact on the health of humanity. ‘
Following this announcement, the J&J title gained nearly 3% in pre-opening in New York.
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