THE WHAT? Johnson & Johnson announced that LTL Management, a newly formed and separate subsidiary established to hold and manage claims in the cosmetic talc litigation, has filed for voluntary Chapter 11 bankruptcy.

THE DETAILS Johnson & Johnson has agreed to provide financing to LTL for the payment of amounts that the bankruptcy court determines to be owed by LTL and will also establish a trust of US $ 2 billion. In addition, LTL has been allocated certain sources of royalty income with a current value of over US $ 350 million to contribute to potential costs.

The American maker of Clean & Clear was keen to stress that it did not admit its responsibility and that it had won the majority of the cosmetic talc-related jury trials that have been argued to date.

THE WHY ? The filing aims to resolve all cosmetic talc-related claims in a manner “fair to all parties,” said the maker of Neutrogena. Michael Ullmann, Executive Vice President, General Counsel for Johnson & Johnson, said: “We are taking these steps to bring certainty to all parties involved in the cosmetic talc business. As we continue to be a strong advocate for the safety of our talcum cosmetic products, we believe that resolving this issue as quickly and effectively as possible is in the best interests of the Company and all stakeholders. “

Source link

Recommended Posts

No comment yet, add your voice below!

Add a Comment

Your email address will not be published. Required fields are marked *