J&J’s Controversial Bankruptcy Strategy Upheld by Judge (1)

Johnson & Johnson won a federal judge’s permission to continue with its controversial strategy to force a settlement with people who claim the company’s baby powder gave them cancer.

U.S. Bankruptcy Judge Michael Kaplan refused to throw out a Chapter 11 petition filed by a unit of J&J. The bankruptcy is an effort to resolve billions of dollars in claims that tainted talc in the company’s baby powder harmed more than 40,000 people. His ruling is poised to benefit J&J because most, if not all, of the lawsuits filed by cancer victims will remain blocked while the company tries to ...