THE WHAT? Johnson & Johnson has been granted leave to halt some 38,000 talc claims it is fighting currently, a first step in its plan to wind down the company it set up to deal with the numerous talc claims, according to a report published by Bloomberg.
THE DETAILS The manufacturer of Aveeno is planning to place the unit it set up to deal with talc claims in bankruptcy, and as a result benefit from the unit’s lawsuit stay.
Bloomberg reports that a long court battle remains before Johnson & Johnson can consider this chapter at a close.
THE WHY? The move, known as a Texas two-step, is designed to limit liability and bring an end to the claims related to its baby powder’s safety. Johnson & Johnson has set aside some US$2 billion to settle all remaining claims.