seb_ra A group of plaintiffs, who allege that Johnson & Johnson's ( NYSE: JNJ ) talc-based baby powder caused their cancers, has lost their bid to block the company's latest effort to use bankruptcy to resolve similar claims after a federal judge rejected their motion. U.S.
District Judge Michael Shipp delivered the ruling on Friday in response to a motion filed by the claimants in a New Jersey court early this month seeking a temporary restraining order against J&J's ( JNJ ) bankruptcy bid. As part of the deal announced in May, the healthcare giant offered to pay ~$6.48B over 25 years to resolve its talc-related cancer claims.
The courts in New Jersey denied its two previous attempts to use a bankruptcy maneuver to reach a settlement. According to Reuters , the judge said he had to deny the motion as any harm to victims was "strictly hypothetical" and added he had no jurisdiction to settle a disagreement over "events that have not, and may never, occur." J&J ( JNJ ) has until July 29 to get 75% of claimants to vote in favor of the plan, a proposal it hadn't used in the two previous bankruptcy attempts.
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