Johnson & Johnson on Thursday put out of business tens of hundreds of authorized claims alleging its Child Powder and different talc-based merchandise triggered 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 known as LTL Administration LLC, which filed for chapter safety on Thursday in North Carolina, in response to the corporate and court docket data.
The corporate faces authorized actions from tens of hundreds of plaintiffs alleging its Child Powder and different talc merchandise contained asbestos and triggered most cancers. The plaintiffs embrace ladies affected by ovarian most cancers and others battling mesothelioma.
J&J mentioned talc instances could be halted whereas LTL navigates chapter proceedings.
It added it could 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 acquired 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 carry certainty to all events concerned within the beauty talc instances,” J&J Basic Counsel Michael Ullmann mentioned in an announcement.
“Whereas we proceed to face firmly behind the security of our beauty talc merchandise, we consider resolving this matter as shortly and effectively as attainable is in the very best 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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