Home Insolvency & Bankruptcy Why is J&J considering filing bankruptcy in US?

Why is J&J considering filing bankruptcy in US?

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Why is J&J considering filing bankruptcy in US?

Johnson & Johnson (J&J) is contemplating submitting chapter for a 3rd time to resolve the 1000’s of lawsuits alleging that its talcum powder merchandise trigger most cancers. The corporate has already filed for chapter twice up to now two years, however each filings had been unsuccessful.

J&J is hoping {that a} third chapter submitting will likely be profitable as a result of it is going to permit the corporate to consolidate the entire talcum powder lawsuits into one chapter court docket. This could give J&J extra management over the settlement course of and will assist the corporate to achieve a extra favorable final result.

J&J has additionally stated that it’s pursuing a consensual decision with the talcum powder plaintiffs. Because of this the corporate is hoping to achieve a settlement settlement with the plaintiffs with out having to go to trial.

Nevertheless, there are some issues {that a} third chapter submitting by J&J may harm the corporate’s status and make it tougher for it to do enterprise sooner or later.

Listed here are a number of the particular the reason why J&J is contemplating submitting chapter for a 3rd time:

  • To consolidate the entire talcum powder lawsuits into one chapter court docket. This could give J&J extra management over the settlement course of and will assist the corporate to achieve a extra favorable final result.
  • To pursue a consensual decision with the talcum powder plaintiffs. Because of this the corporate is hoping to achieve a settlement settlement with the plaintiffs with out having to go to trial.
  • To cut back the monetary burden of the talcum powder lawsuits. J&J has already spent billions of {dollars} defending itself in opposition to these lawsuits, and a 3rd chapter submitting may assist the corporate to cut back its monetary publicity.

It is very important observe that J&J has not but filed for chapter, and it’s potential that the corporate will be capable of attain a settlement settlement with the talcum powder plaintiffs with out having to undergo chapter once more.

Additionally Learn: Industrial chapter filings in US improve 61% in first 9 mnths of 2023

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