Imerys Bankruptcy Judge Weighs Pausing J&J Asbestos Fraud Suit

Imerys Talc America Inc. told a Delaware bankruptcy judge that its bankruptcy proceedings should halt a proposed class action accusing former customer, Johnson & Johnson, of lying about asbestos in talc products.

The lawsuit brought by the family of a former industrial worker, Louis Edley, accuses Johnson & Johnson of “directly and systematically” concealing evidence that its talc contained asbestos. It doesn’t name Imerys, a talc producer, as a defendant.

But the companies’ past ties implicates Imerys, and its bankruptcy triggers the debtor’s automatic stay protections, Imerys attorney Shawn Hansen of Latham & Watkins LLP argued Wednesday in a hearing. ...