J&J’s Latest Talc Bankruptcy Bid Must Be Dismissed, DOJ Says (1)

Johnson & Johnson’s latest attempt to use a subsidiary’s bankruptcy to resolve tens of thousands of talc-related personal injury claims should be thrown out, the Justice Department’s bankruptcy watchdog said.

The Red River Talc LLC bankruptcy mirrors two earlier Chapter 11 cases for a J&J talc unit that were dismissed by a different bankruptcy court, the US Trustee said. J&J is trying to work around those earlier dismissals by placing Red River, a new entity, into Chapter 11 in the US Bankruptcy Court for the Southern District of Texas, the US Trustee said in a Monday motion to dismiss the ...