Health Care & Hospital Law,
Civil Litigation,
Bankruptcy
Oct. 21, 2021
Plaintiffs' attorneys accuse J&J of 'Texas Two-Step' to avoid liability
Johnson & Johnson sent out automatic stay notices in nearly 40,000 lawsuits throughout the U.S. in which the company is accused of using cancer-causing asbestos in its baby powder products. However, since no bankruptcy judge approved the stay order, trial courts were left wondering whether to pause litigation proceedings or not.
Plaintiffs' attorneys throughout the U.S. rushed to a North Carolina federal courthouse Wednesday to oppose what they called Johnson & Johnson's "Texas Two-Step" bankruptcy strategy, which would halt 40,000 talcum powder lawsuits, potentially worth billions of dollars in liability.
Plaintiffs' attorneys said they were surprised last week when Johnson & Johnson announced it had created a subsidiary, LTL Management LLC, "to hold and ...
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