Johnson & Johnson on Thursday put out of business tens of 1000’s of authorized claims alleging its Child Powder and different talc-based merchandise prompted most cancers, offloading the potential liabilities right into a newly created subsidiary hived off from the remainder of the healthcare conglomerate.
J&J put the talc claims into an entity referred to as LTL Administration LLC, which filed for chapter safety on Thursday in North Carolina, based on the corporate and courtroom information.
The corporate faces authorized actions from tens of 1000’s of plaintiffs alleging its Child Powder and different talc merchandise contained asbestos and prompted most cancers. The plaintiffs embody ladies affected by ovarian most cancers and others battling mesothelioma.
J&J mentioned talc circumstances could be halted whereas LTL navigates chapter proceedings.
It added it will fund LTL’s liabilities in an quantity later decided by a chapter choose, and set up a $2 billion belief for a similar goal. LTL has additionally obtained sure royalty income streams with a gift worth of greater than $350 million to contribute to potential authorized prices, J&J mentioned.
“We’re taking these actions to deliver certainty to all events concerned within the beauty talc circumstances,” J&J Normal Counsel Michael Ullmann mentioned in an announcement.
“Whereas we proceed to face firmly behind the protection of our beauty talc merchandise, we imagine resolving this matter as rapidly and effectively as doable is in the most effective pursuits of the (firm) and all stakeholders,” Ullmann added.
Reuters first reported in July that J&J was exploring offloading its talc liabilities and putting them out of business.
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