J&J Moves to Dismiss Plaintiffs’ Bankruptcy Challenge Lawsuit

Johnson & Johnson moved to dismiss a lawsuit accusing it of fraudulently transferring money to set up liability-limiting bankruptcies of a shell company.

The lawsuit, filed by a group of plaintiffs firms in May, said J&J’s repeated attempts to use the bankruptcy system to resolve alleged cancer liability is an abuse of process.

J&J has twice placed an affiliate, LTL Management LLC, into bankruptcy to resolve liability alleging that its talc products caused cancer. Those attempts, both dismissed by the courts, have prevented victims from getting their day in court, plaintiffs said.

J&J’s Thursday motion to dismiss said the ...