Johnson & Johnson Talc Bankruptcies Abused System, Suit Says (1)

Johnson & Johnson’s repeated attempts to use the US bankruptcy courts to corral lawsuits accusing it of selling cancer-causing baby powders is an abuse of process that keeps former users from getting their day in court, according to a lawsuit.

J&J’s two failed Chapter 11 cases aimed at settling all current and future baby powder suits involved the improper shifting of billions of dollars of assets among its units and worked to wrongfully delay cancer victim’s jury trials, attorneys for consumers said in the suit, filed Tuesday in federal court in New Jersey.

The company adopted a “strategy ...