J&J took a $1.4 bln third-quarter charge for litigation. It has tried to limit claims to a unit that just declared bankruptcy. That would mean a cap on its liabilities. But J&J, and others that try the legal tactic, aren't assured of success: rob_cyran
Johnson & Johnson reported third-quarter results on Oct. 19. The healthcare company took a $2.1 billion charge for litigation expenses, of which $1.4 billion was associated with a settlement fund for current and future claims that its talc contained products including asbestos that caused cancer. The company says it believes none of the talc-related claims against the company have merit.
On Oct. 14, J&J said that LTL Management, a new subsidiary created to hold and manage talc litigation claims, had filed for bankruptcy under Chapter 11 in North Carolina. J&J itself did not file for bankruptcy. J&J's maneuver is known as a Texas two-step. State law allows a business incorporated there to split in what is called a divisive merger. The law specifies that this takes place without any transfer having occurred. The legal theory is that, if no transfer took place, the split can't have been a fraudulent transfer that deprived creditors, including plaintiffs, of assets they might have claimed against.
J&J said it has agreed to provide funding for LTL for the amount the court determines is owed and would establish a $2 billion trust and allocated certain royalties with a present value of $350 million to cover potential costs.A bottle of Johnson and Johnson Baby Powder is seen in a photo illustration taken in New York, February 24, 2016.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Toyota to build $1.29B battery factory in U.S. that will employ 1,750 peopleToyota and other companies announced plans Monday to build factories or raise funds as they anticipate a transition from gas-powered vehicles to electric ones.
Les mer »
'Celebrity Wheel of Fortune': Actress Melissa Joan Hart rakes in record $1 million prize - CNN Video'Sabrina the Teenage Witch' actress Melissa Joan Hart became the first contestant to win a $1 million prize on 'Celebrity Wheel of Fortune.'
Les mer »
German food delivery giant Delivery Hero leads $1 billion investment in grocery start-up GorillasDelivery Hero has invested $235 million in Gorillas as part of a $1 billion funding round.
Les mer »
Haiti gang seeks $1 million per person for kidnapped missionariesA Haitian gang that kidnapped a group of American and Canadian missionaries is asking for $17 million - or $1 million each - to release them, according to a top Haitian official.
Les mer »
UBS picks 10 global stocks set to rally on a $1 trillion pandemic spending boomNew for subscribers: UBS picks 10 global stocks set to rally on a $1 trillion pandemic spending boom. Check out CNBCPro today.
Les mer »
Justice Department asks Supreme Court to block Texas' 6-week abortion banThe Justice Department formally asked the Supreme Court Monday to step in and block a controversial Texas law that bars most abortions after six weeks of pregnancy while legal challenges play out.
Les mer »