Judge Rejects J&J's $10 Billion Bankruptcy Proposal Amid Ongoing Talc Lawsuits

A U.S. bankruptcy judge rejected Johnson & Johnson's proposal to settle talc-related cancer lawsuits for $10 billion. The ruling highlights flaws in the voting process and questions J&J's financial distress status. J&J stops selling talc powder in the U.S., switching to cornstarch after previous settlements.

In a significant legal setback, a U.S. bankruptcy judge has dismissed Johnson & Johnson's $10 billion settlement offer aimed at resolving numerous lawsuits pertaining to allegations that its talc products cause ovarian cancer. This marks the third instance of J&J's bankruptcy attempts failing in court.

Presiding over the case, Bankruptcy Judge Christopher Lopez, stated that J&J did not meet the criteria for bankruptcy. He criticized the proposed settlement for lacking adequate backing from affected women and for overreaching in releasing legal claims against non-bankrupt entities, including former subsidiary Kenvue.

Despite J&J's assertion that its deal had majority support from affected parties, Judge Lopez identified critical flaws in how the votes were collected and tabulated. He emphasized the need for increased accountability, as many attorneys voted on behalf of their clients without proper authorization.

(With inputs from agencies.)