Exclusive: Johnson & Johnson is considering refiling a talc-liability bankruptcy despite a federal appeals court defeat
The 3rd U.S. Circuit Court of Appeals Philadelphia rejected J&J’s gambit in January, ruling that the cash-flush subsidiary had no legitimate claim to bankruptcy protection because it wasn’t in financial distress. The appeals court pointed to a funding agreement between J&J and its subsidiary that provided the new unit with the financial wherewithal to settle lawsuits.
That threshold is required for a bankruptcy judge to approve settlements in cases involving asbestos, a higher bar than other kinds of Chapter 11 court restructurings. A December 2018revealed that J&J knew for decades about tests showing its talc sometimes contained carcinogenic asbestos but kept that information from regulators and the public. J&J has denied its talc contains asbestos.
Dropping the funding agreement, however, could create other legal problems for J&J. Judge Thomas Ambro, the appeals court judge who wrote the decision overturning J&J’s two-step, warned that, without the funding agreement, the company could run afoul of fraudulent-transfer prohibitions.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Exclusive Interview With Zelwin CEO Nikolay Shkilev | HackerNoonIn addition to being the CEO of Zelwin, Nikolay Shkilev, Ph.D., founded Private Business Club for VCs and angel investors. - cryptocurrency blockchain
Read more »
WSJ News Exclusive | McDonald’s Temporarily Shuts U.S. Offices as Chain Prepares for Layoff NoticesThe fast-food company is expected to notify workers of their job status virtually. The layoffs are part of a broader restructuring.
Read more »
Exclusive: Louisiana backstory puts puzzling twist on Trump-Daniels taleWith the political world obsessed with the rather flimsy indictment in New York of former President Donald Trump, here’s what puzzles me: Why did Trump pay off somebody to keep quiet something that was already prominently in the public domain?
Read more »
ABC News exclusive: Former Arkansas Gov. Asa Hutchinson announces 2024 presidential runFormer GOP Gov. Asa Hutchinson announces during an exclusive interview with JonKarl that he will be running for president. “I'm convinced that people want leaders that appeal to the best of America and not simply appeal to our worst instincts.”
Read more »
EXCLUSIVE: Cartier Unveils Vanessa Kirby La Panthère CampaignEnglish actress and philanthropist Vanessa Kirby is the face of Cartier’s new La Panthère fragrance campaign.
Read more »
EXCLUSIVE: H&M Beauty Opening First Global Flagships, in OsloThe two 3,230-square-foot locations mix cocktail bar and spa aesthetics.
Read more »