Johnson & Johnson revives bankruptcy plan to tackle talc cases
Johnson & Johnson subsidiary, Red River Talc has applied to a Texan bankruptcy court in the hope of gaining approval for a deal whereby the company would set up a trust to settle some 93,000 talc cases. The post Johnson & Johnson revives bankruptcy plan to tackle talc cases appeared first on Global Cosmetics News.
THE WHAT? Johnson & Johnson subsidiary, Red River Talc has applied to a Texan bankruptcy court in the hope of gaining approval for a deal whereby the company would set up a trust to settle some 93,000 talc cases.
THE DETAILS Some 83 percent of claimants have voted in favor of the agreement, according to a report published by The Wall Street Journal. The pot of US$9 billion would pay an average of US$120,000 to each claimant.
THE WHY? Johnson & Johnson has been attempting to bring all talc litigation to a close via a chapter 11 process known as the ‘Texas Two Step’. Those who oppose the plan have argued that a profitable company should be prevented from using the bankruptcy courts in this way.
The post Johnson & Johnson revives bankruptcy plan to tackle talc cases appeared first on Global Cosmetics News.
