An attorney for Johnson and Johnson faced probing questions Monday over the corporation’s use of a controversial bankruptcy maneuver that has frozen tens of thousands of lawsuits linked to Johnson’s baby powder.
During the hearing, members of a three-judge panel of the United States Court of Appeals for the Third Circuit in Philadelphia asked whether J&J had used the legal strategy to gain “a litigation advantage” over roughly 40,000 cancer patients who have sued the company.
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Attorney Neal Katyal, representing the company, responded by arguing that the bankruptcy maneuver — known as the “Texas two-step” — would benefit victims by producing a faster settlement, possibly worth as much as $61 billion.
Katyal acknowledged criticism that a “big company that has all these profits is somehow trying to evade liability.”
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Article URL : https://www.npr.org/2022/09/19/1123567606/johnson-baby-powder-bankruptcy-lawsuits