Subsidiary of Johnson & Johnson company is driven to bankruptcy over talc claims

Johnson & Johnson company has taken drastic measures to combat the claims it received over talc powder. The management made a decision to drive the subsidiary to bankruptcy, which may free the company from the obligations to pay about $ 3.5 billion in compensation.

The company in question is LTL Management LLC (LTL), which was created to deal with claims. The day before, the company filed a lawsuit for voluntary bankruptcy protection, according to the information posted on the Johnson & Johnson’s website. Thus, it is planned to consider the issue of compensation payments, which has been previously announced, in court.

According to Michael Ullmann, the leading legal adviser of Johnson & Johnson, the bankruptcy measure for the subsidiary is being taken to bring legal clarity to the cosmetic talc conflict.

At the same time, Johnson & Johnson intends to provide LTL not only with the amounts that, according to the court, should be paid within the framework of the claims, but also with the additional financing.

The company does not consider the measures taken as a concession of liability, but considers them the means of achieving a fair and effective settlement of claims.

Despite this, Johnson & Johnson continues to insist on the safety of its cosmetic talc, thereby fending off the allegations of causing mesothelioma ovarian cancer.