Judge to Consider Blocking J&J from Giving Talc Claims to Unit

A bankruptcy judge agreed to consider blocking Johnson & Johnson from putting billions of dollars in potential health claims into a unit that could file bankruptcy to resolve the liabilities.

U.S. Bankruptcy Judge Laurie Silverstein ordered J&J to appear at a hearing Thursday afternoon to respond to a request from people who say they were harmed by the company’s baby powder. Those alleged victims claim J&J may use “corporate manipulations” to dump talc-related claims into a subsidiary in a “divisive merger” that would protect the consumer product giant’s profits.

Under the U.S. bankruptcy code, companies can put a unit facing ...