Johnson & Johnson creates and immediately declares bankruptcy in order to take the brunt of litigation over its baby powder.
The drugmaker faces tens of thousands of lawsuits over its talc and other products labeled carcinogenic.
Pharmaceutical giant Johnson & #Johnson resorted to a legal trick so that the tens of thousands of lawsuits filed against it for the use of alleged harmful and carcinogenic substances in its products could be considered in a single litigation.
To that end, the U.S. company created a subsidiary, LTL Management, which this Thursday filed for #bankruptcy before a court in North Carolina.
This legal maneuver, known as a 'two-step Texas bankruptcy' and already performed by other litigation-plagued drugmakers, would divert to the new structure all obligations that may await the company as a result of any lawsuits or other legal actions.
According to the bankruptcy order materials, cited by Reuters, Johnson & Johnson's legal costs in the face of nearly 40,000 cases approach $1 billion, while settlements and other verdicts would add $3.5 billion.
The company, which has a market value in excess of $400 billion, thus took a step toward having all litigation put on hold while LTL is processing the bankruptcy, which neither the drugmaker nor its other subsidiaries are part of.
J&J promises to fund LTL's future legal costs in connection with the lawsuits, at a rate to be determined by the judge in the case.
The company has been defending itself for years against multiple lawsuits related to products such as #baby #powder. In particular, it faces claims from individuals, including women with ovarian cancer, who allege that #asbestos in baby powder caused their cancer.
Johnson & Johnson denies the allegations and maintains that its talc is "safe, does not contain asbestos and does not cause cancer".
https://www.reuters.com/business/healthcare-pharmaceuticals/jj-unit-manage-talc-claims-files-bankruptcy-protection-2021-10-14/
The drugmaker faces tens of thousands of lawsuits over its talc and other products labeled carcinogenic.
Pharmaceutical giant Johnson & #Johnson resorted to a legal trick so that the tens of thousands of lawsuits filed against it for the use of alleged harmful and carcinogenic substances in its products could be considered in a single litigation.
To that end, the U.S. company created a subsidiary, LTL Management, which this Thursday filed for #bankruptcy before a court in North Carolina.
This legal maneuver, known as a 'two-step Texas bankruptcy' and already performed by other litigation-plagued drugmakers, would divert to the new structure all obligations that may await the company as a result of any lawsuits or other legal actions.
According to the bankruptcy order materials, cited by Reuters, Johnson & Johnson's legal costs in the face of nearly 40,000 cases approach $1 billion, while settlements and other verdicts would add $3.5 billion.
The company, which has a market value in excess of $400 billion, thus took a step toward having all litigation put on hold while LTL is processing the bankruptcy, which neither the drugmaker nor its other subsidiaries are part of.
J&J promises to fund LTL's future legal costs in connection with the lawsuits, at a rate to be determined by the judge in the case.
The company has been defending itself for years against multiple lawsuits related to products such as #baby #powder. In particular, it faces claims from individuals, including women with ovarian cancer, who allege that #asbestos in baby powder caused their cancer.
Johnson & Johnson denies the allegations and maintains that its talc is "safe, does not contain asbestos and does not cause cancer".
https://www.reuters.com/business/healthcare-pharmaceuticals/jj-unit-manage-talc-claims-files-bankruptcy-protection-2021-10-14/
Reuters
J&J puts talc liabilities into bankruptcy
Johnson & Johnson on Thursday put into bankruptcy tens of thousands of legal claims alleging its Baby Powder and other talc-based products caused cancer, offloading the potential liabilities into a newly created subsidiary.
The Road To Ruin: U.S. Government Adds $1 Trillion In Debt In 3 Months! | RonPaulLibertyReport
It took the U.S. federal government almost 200 years to rack up $1 Trillion in debt. The latest trillion to be added took a mere 3 months! Far too many Americans have come to believe that, instead of protecting individual liberty, the U.S. government can be everything to everyone. Meanwhile, members of government have come to believe that, not only can they perform such an impossible task, but they can perform it for the entire world! This massive delusion is racing towards a massive bankruptcy
#USDebt #USTreasury #USCB #FiatCurrency #Crash #Bankruptcy #FinancialCrisis
It took the U.S. federal government almost 200 years to rack up $1 Trillion in debt. The latest trillion to be added took a mere 3 months! Far too many Americans have come to believe that, instead of protecting individual liberty, the U.S. government can be everything to everyone. Meanwhile, members of government have come to believe that, not only can they perform such an impossible task, but they can perform it for the entire world! This massive delusion is racing towards a massive bankruptcy
#USDebt #USTreasury #USCB #FiatCurrency #Crash #Bankruptcy #FinancialCrisis