J&J is using a bankruptcy maneuver to block lawsuits over baby powder cancer claims
Johnson & Johnson spun off liabilities — including roughly 38,000 lawsuits — linked to claims of asbestos contamination in its baby powder to a new firm, which then declared bankruptcy.
Hasnain says:
How is this legal?! More importantly, why is this legal?
“"Johnson & Johnson doesn't have this liability anymore. They pushed all of it into the company they created just to file for bankruptcy," said Lindsey Simon, a bankruptcy expert at the University of Georgia School of Law.
As a result, Simon said, "consumers can't recover [damages] against a big solvent company. They have to recover against this smaller fictional company created [by J&J]."”
Posted on 2021-10-23T23:34:15+0000