J&J Unit’s Talc Bankruptcy Needs Examiner, U.S. Trustee Says

The Justice Department’s bankruptcy watchdog urged a court to appoint an independent examiner in the bankruptcy case of Johnson & Johnson spin-off LTL Management LLC to assess whether a controversial liability-limiting practice is viable.

An independent fiduciary could aid the court in determining whether the case should be dismissed, the U.S. Trustee said in a filing Wednesday in the U.S. Bankruptcy Court for the District of New Jersey.

Healthcare giant Johnson & Johnson recently took advantage of a unique Texas corporate law that allows large corporations that reincorporate in Texas to split off a subsidiary and transfer mass tort liabilities ...