J&J Uses Cajoling, $9 Billion Offer to Sell New Talc Bankruptcy

A Johnson and Johnson subsidiary’s second Chapter 11 with an $8.9 billion offer to settle cancer claims stunned many interested parties, but it was a product of weeks of hustling, out-of-court talks and a nationwide search for victim lawyers willing to cut a deal.

In anticipation of its first bankruptcy case failing, LTL Management LLC, a unit created by the healthcare giant to house mass tort claims that its talc products caused cancer, made sure to fund the pool this time around with a seemingly eye-popping figure that’s higher than the offer in the first bankruptcy. It then filed a ...