Court rejects Johnson & Johnson’s Texas two-step bankruptcy ploy for talc claims

A federal appeals court panel has voted unanimously to dismiss Johnson & Johnson’s attempt to use the controversial Texas two-step strategy to resolve claims from users who allege that the comp | A federal appeals court panel has voted unanimously to dismiss Johnson & Johnson’s attempt to use the controversial Texas two-step strategy to resolve claims from users who allege that the company’s talc products cause cancer. The ruling, from the Third U.S. Circuit Court of Appeals, prevents J&J from funneling approximately 40,000 lawsuits into its newly created subsidiary, LTL Management LLC, and declaring it bankrupt, a ploy that could save the company billions.

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