J&J’s Strategy on Cancer Suits Questioned by Appeals Court (2)

Johnson & Johnsonfaced tough questions from federal appellate judges about whether placing a unit in bankruptcy to deal with more than 40,000 cancer lawsuits over its baby powder was legitimate.

The three-judge panel in Philadelphia heard arguments about LTL Management’s Chapter 11 case Monday and will decide later whether the case was filed in good faith, or should be thrown out because J&J and its units don’t face immediate financial distress. Should J&J and LTL lose, juries would once again hear talc cancer claims, leaving J&J facing legal and financial uncertainties as it fights individual cases around the ...