LTL Management, a subsidiary of Johnson & Johnson created to file for bankruptcy after the company was sued over safety concerns with its talc products, has filed again for bankruptcy following a failed first attempt.
LTL will also pay $8.9 billion over 25 years to settle all current and future claims. In its first Chapter 11 filing in October 2021, the company offered $2 billion. An appellate judge in New Jersey Bankruptcy Court rejected the offer in January, saying he would throw out LTL’s case in February.
J&J said that it stands by the safety of its talc products and that the monetary offer did not constitute an admission of guilt. It also said it would file an appeal.
"Resolving this matter through the proposed reorganization plan is both more equitable and more efficient, allows claimants to be compensated in a timely manner, and enables the Company to remain focused on our commitment to profoundly and positively impact health for humanity," Erik Haas, J&J’s worldwide vice president of litigation, said in a statement.
Plaintiffs say they contracted cancer after using J&J’s talc products, and their lawyers said in early April that the company should not be able to use Chapter 11 bankruptcy to “address their liability.”
J&J said in a statement that 60,000 claimants support their offer.