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Online Extra: In 'Landmark' Win for Talc Plaintiffs, Third Circuit Dismisses Johnson & Johnson Unit's Bankruptcy
[Editor's Note: This story hit just as we were posting the February issue. Here is Law.com's story. We'll follow up with analysis and more in next month's issue.]
In a big win for plaintiffs suing over Johnson & Johnson's baby powder, an appeals court dismissed a Chapter 11 talc case that had halted trials across the country.
On Jan. 30, the U.S. Court of Appeals for the Third Circuit found that the subsidiary, LTL Management, which had a $61 billion funding agreement with Johnson & Johnson, was not in financial distress when it filed for bankruptcy in 2021. The ruling reverses a Feb. 25 decision by U.S. Bankruptcy Chief Judge Michael Kaplan of the District of New Jersey.
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