Jakarta –
Powder supplier, Johnson & Johnson (JNJ.N) filed for bankruptcy. This is in the aftermath of tens of thousands of lawsuits against the company over other products condemned as causing cancer.
Quoted from Reuters, Friday (10/15/2021) In filing for bankruptcy, J&J plans to revamp the company. There are two choices, firstly by merger and secondly by transferring the business to , LTL Management LLC. So, this powder case will also be covered by LTL.
“We are taking this action to provide reassurance to all parties involved in the cosmetic powder case,” J&J General Counsel Michael Ullmann said in a statement.
“While we continue to stand firmly behind the safety of our cosmetic powder products, we believe resolving this issue as quickly and efficiently as possible is in the best interest of (the company) and all stakeholders,” added Ullmann.
J&J said it would fund LTL’s legal fees for the powder case, with an advance of US$2 billion. LTL has also received a royalty revenue stream of more than US$ 350 million to contribute to legal fees.
In handling the case of powder products, J&J is said to have spent a lot of money. The settlement and verdict has cost J&J an estimated $3.5 billion more.
But the bankruptcy filing was judged to be just a gimmick by the company’s plaintiffs.
“J&J’s bankruptcy gimmick is as despicable as the impudent and senseless abuse of the legal system,” said Linda Lipsen, chief executive of the American Association for Justice, a group of court attorneys.
Tens of thousands of plaintiffs have accused J&J’s Baby Powder and other talc products of criticizing and suing J&J because their products are said to contain asbestos and cause cancer.
(fdl/fdl)
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