Johnson & Johnson Back in Court Over Talc-Related Cancer Claims
Yesterday, Johnson & Johnson (NYSE: JNJ) faced the trial related to the lawsuit accusing its baby powder and other talc products of causing cancer.
This is the first trial in almost two years related to the suit, with the company seeking to settle thousands of similar cases in bankruptcy court, Reuters reported.
Emory Hernandez, aged 24, claims to have developed deadly cancer, mesothelioma, due to exposure to JNJ's talc products when he was a baby.
JNJ has denied that its talc contains asbestos, which is related to mesothelioma, or causes cancer.
JNJ lawyer, Allison Brown, asserted that the company has thoroughly examined and ensured the absence of contaminants in its talc.
She argued that Hernandez's mesothelioma form was rare and more likely related to a family history of heart disease and cancer.
Last month, the company's subsidiary LTL Management re-filed for bankruptcy to resolve all talc-based baby powder claims.
Amid the bankruptcy proceedings last month, the U.S. Judge halted around 38,000 lawsuits related to the same.
However, the U.S. Chief Bankruptcy Judge, Michael Kaplan, allowed Hernandez's trial due to his probable short life.
The claimants seek to have the latest bankruptcy filing dismissed.
J&J and LTL argued that the bankruptcy would deliver settlement payouts more fairly and equitably than a "lottery" offered by trial courts, where some litigants get significant awards and others nothing.
Price Action: JNJ shares are trading lower by 0.75% at $153.90 on the last check on Thursday.
Photo via Wikimedia Commons
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