J&J Unit Creditors to Get Bankruptcy Review in Third Circuit (1)

A federal appeals court has agreed to hear appeals by asbestos victims who are trying to end a Johnson & Johnson spinoff’s bankruptcy that was filed to limit the healthcare giant’s tort liability from its talc products.

The four appeals that the U.S. Court of Appeals for the Third Circuit agreed Wednesday to consider will include review of a New Jersey bankruptcy court’s decision earlier this year that denied tort claimants’ motion to dismiss the Chapter 11 case that was filed by the J&J unit that was spun off, LTL Management LLC.

The tort claimants are arguing that LTL Management’s ...