THE WHAT? Johnson & Johnson (J&J) subsidiary LTL Management has lost an appeal to delay a court order dismissing its bankruptcy, according to a report by Reuters.
THE DETAILS J&J is facing some 38,000 lawsuits that allege the company’s baby powder is laced with asbestos.
LTL Management planned to use the Supreme Court appeal to use bankruptcy to resolve lawsuits regarding J&J’s talc products and their link to cancer.
THE WHY? The decision follows a ruling in January, when the 3rd U.S. Circuit Court of Appeals in Philadelphia ruled that neither LTL or J&J had a legitimate need for bankruptcy protection due to them not being in “financial distress.”
LTL then asked for a delay to the ruling in order for them to be able to apply for a U.S. Supreme Court Appeal, which has now been denied, with a U.S. bankruptcy judge being directed to dismiss LTL’s Chapter 11 case.
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