Judge Rejects J&J's $10 Billion Bankruptcy Bid Over Talc Lawsuits

A U.S. bankruptcy judge has rejected Johnson & Johnson's $10 billion plan to resolve lawsuits claiming its talc products cause cancer. This marks the third failed attempt to settle via bankruptcy. Despite support from many cancer victims, opponents argue J&J isn’t in financial distress to justify bankruptcy.

In a significant legal development, a U.S. bankruptcy judge on Monday rejected Johnson & Johnson's $10 billion proposal designed to end tens of thousands of lawsuits alleging the company's talc products cause cancer.

This marks the third strike against J&J's bankruptcy strategy, with U.S. Bankruptcy Judge Christopher Lopez deeming the company unfit for bankruptcy protection. J&J's unsuccessful attempt followed two prior failures in different court settings.

Despite having garnered support from a substantial number of cancer claimants, the proposal faced opposition from legal watchdogs who argued that J&J, a financially robust company, sought bankruptcy routes to avoid courtroom scrutiny and accountability.

(With inputs from agencies.)