Johnson & Johnson Considers Ditching Texas Two-Step for Third Talc Bankruptcy

Johnson & Johnson is exploring a new bankruptcy filing for its talc-related liabilities using a different corporate structure than the Texas Two-Step filings that failed twice before to resolve those mass claims in chapter 11, according to people familiar with the company’s plans.

The healthcare-products company said on a quarterly earnings call Tuesday that it is pursuing a consensual resolution through bankruptcy of tens of thousands of talc-related personal-injury lawsuits. J&J failed in two prior efforts to resolve those mass claims in chapter 11 proceedings by shifting them to its LTL Management affiliate and from there to bankruptcy court.

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