Judge Rebukes J&J's $10 Billion Baby Powder Bankruptcy Bid

Johnson & Johnson's third attempt to use bankruptcy to settle tens of thousands of lawsuits related to its talc products was rejected by a U.S. bankruptcy judge. The proposal was criticized for being a strategic move to evade accountability, prompting the continuation of lawsuits alleging cancer risks from the products.

A U.S. bankruptcy judge rejected Johnson & Johnson's $10 billion settlement proposal on Monday, marking the third failed attempt by the company to settle lawsuits claiming its talc-containing products cause cancer.

The ruling by U.S. Bankruptcy Judge Christopher Lopez challenged J&J's strategy of using bankruptcy to avoid accountability. "While the Court's decision is not an easy one, it is the right one," Lopez stated, emphasizing the need for fair resolution for claimants.

Attorneys for the plaintiffs argue that J&J is avoiding its financial responsibilities. Despite the setback, plaintiffs are eager to present their cases in court. J&J maintains the safety of its products but had ceased selling its talc-based baby powder in 2020.

(With inputs from agencies.)