强生面临约6.1万名原告的诉讼，他们指控强生的婴儿爽身粉和其他滑石粉产品被石棉污染，导致卵巢癌和其他癌症。强生否认了这些指控，并表示其产品是安全的。According to reports, Johnson & Johnson (JNJ.US) has cleared a key obstacle for its $6.5 billion baby powder compensation agreement.
Zhixun Finance APP learned that Johnson & Johnson (JNJ.US) has cleared a key obstacle for its $6.5 billion baby powder compensation agreement. Sources said that more than 75% of plaintiffs voted in favor of this proposal, paving the way for the company to address related litigation through its subsidiary's application for bankruptcy protection.
Johnson & Johnson spokesperson Clare Boyle said that the company cannot comment on this because the results of the vote have not yet been finalized. The company has previously stated that it believes its settlement proposal will ultimately receive sufficient support from plaintiffs to continue moving forward.
Johnson & Johnson faces litigation from approximately 610,000 plaintiffs who allege that its baby powder and other talc products were contaminated with asbestos, leading to ovarian cancer and other cancers. Johnson & Johnson denies these allegations and says its products are safe.
After being rejected twice by federal courts, the medical giant is once again attempting to end the lawsuit through a so-called "Texas two-step bankruptcy". This strategy involves transferring its talc business to a newly formed subsidiary, which then applies for bankruptcy protection. The goal is to use this process to force all plaintiffs into a settlement without Johnson & Johnson itself having to file for bankruptcy.
However, the company needs 75% of claimants to vote in favor before it can request that a bankruptcy judge enforce a settlement agreement against all claimants.
Johnson & Johnson's bankruptcy strategy still faces legal obstacles. The US Supreme Court recently ruled in the Purdue Pharma bankruptcy case, restricting the ability of courts to stop lawsuits against individuals and companies like Johnson & Johnson who have not yet filed for bankruptcy without the consent of plaintiffs.
Johnson & Johnson has stated that the Purdue decision will not affect its settlement proposal because US bankruptcy law provides clear legal protection for asbestos defendants who have not yet filed for bankruptcy. Johnson & Johnson claims to be eligible for this protection.
