Justice Department's Trustee Program Alleges Johnson & Johnson's Talc Litigation Bankruptcy Bid Is Bad-Faith Tactic To Avoid Liability
Portfolio Pulse from Vandana Singh
The DOJ's Trustee Program has filed a motion to dismiss Johnson & Johnson's bankruptcy filing, alleging it is a bad-faith tactic to avoid liability for talc-related lawsuits. J&J's strategy involves creating a subsidiary to handle liabilities, which the DOJ argues is an attempt to sidestep previous rulings.
October 22, 2024 | 8:27 pm
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Johnson & Johnson faces a DOJ challenge to its bankruptcy filing strategy, which aims to manage over 60,000 talc-related lawsuits. The DOJ claims this is a bad-faith tactic to avoid liability, potentially impacting J&J's legal and financial standing.
The DOJ's motion to dismiss J&J's bankruptcy filing as a bad-faith tactic could lead to increased legal scrutiny and financial liabilities for the company. This may negatively impact J&J's stock in the short term as investors react to potential legal and financial repercussions.
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