Reuters reveals J&J's secret plan to cap litigation payouts to cancer victims - Reuters News Agency

Reuters reveals J&J’s secret plan to cap litigation payouts to cancer victims

On Feb. 4, Reuters revealed in a Special Report that Johnson & Johnson privately took concrete steps starting as early as April 2021 to consider and plan a maneuver, known as a Texas two-step, to shift all its talc liability onto a newly created subsidiary that would immediately file for bankruptcy. The maneuver–J&J’s latest attempt to manage mounting allegations that asbestos lurked in its talc and caused terminal illnesses–halted all litigation against the company and could require plaintiffs to compete in bankruptcy court for compensation from a limited pool of money.

Article Tags
Topics of Interest: Health
Type: Reuters Best
Sectors: Pharmaceuticals & Healthcare
Regions: Americas
Win Types: Exclusivity
Story Types: Special Report / Insight
Media Types: PicturesText
Customer Impact: Significant National Story
A bottle of Johnson and Johnson Baby Powder is seen in a photo illustration taken in New York, February 24, 2016. Consumers expressed concern on social media about a talc-based baby powder made by Johnson & Johnson on Wednesday after a Missouri jury ordered the company to pay $72 million in damages to the family of a woman who said her death from cancer was linked to use of the product.  REUTERS/Mike Segar/Illustration
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