arsenisspyros A group of plaintiffs who allege that Johnson & Johnson's ( NYSE: JNJ ) talc-based baby powder caused their cancers has asked a federal judge to halt the company's latest bid to use bankruptcy to resolve tens of thousands of similar claims. The claimants filed a motion in a New Jersey court on Tuesday, seeking a temporary restraining order to block J&J ( JNJ ) or any of its subsidiaries from declaring bankruptcy in a region outside New Jersey to settle the lawsuits. In May, the New Brunswick, New Jersey-based pharma giant offered to pay ~$6.
475B over 25 years to resolve claims alleging that its talc-based baby powder caused ovarian cancer. If 75% of claimants vote in favor of the deal, the company unit will seek Chapter 11 bankruptcy to proceed with the settlement. The proposal marked the company's latest attempt to address a major legal overhang after courts in New Jersey denied its two previous bankruptcy bids.
"Individuals should not be coerced to accept unreasonable settlement values and terms through the bankruptcy vote of a group of others," said Andy Birchfield, a lawyer representing the victims. "On behalf of our clients, we will press on through all of J&J's delay tactics and bullying." More on Johnson & Johnson Johnson & Johnson: Market Will Regret The Overreaction Johnson & Johnson (JNJ) Bernstein's 40th Annual Strategic Decisions Conference - (Transcript) Johnson & Johnson: Vital Signs Decent, A Compelling Value Case J&J in $700M settlement with stat.
