THE WHAT? Johnson & Johnson has announced that LTL Management, a newly created and separate subsidiary established to hold and manage claims in the cosmetic talc litigation, has filed for voluntary Chapter 11 bankruptcy protection.
THE DETAILS Johnson & Johnson has agreed to provide funding to LTL for the payment of amounts the Bankruptcy Court determines are owed by LTL and will also establish a US$2 billion trust. In addition, LTL has been allocated certain royalty revenue streams with a current value of more than US$350 million to contribute to potential costs.
The US manufacturer of Clean & Clear was keen to point out that it was not admitting liability and that it has won the majority of cosmetic talc-related jury trials that have been litigated to date.
THE WHY? The filing is intended to resolve all claims related to cosmetic talc in a manner that is ‘equitable to all parties’ the manufacturer of Neutrogena said. Michael Ullmann, Executive Vice President, General Counsel of Johnson & Johnson, commented, “We are taking these actions to bring certainty to all parties involved in the cosmetic talc cases. While we continue to stand firmly behind the safety of our cosmetic talc products, we believe resolving this matter as quickly and efficiently as possible is in the best interests of the Company and all stakeholders.”