Bankruptcy Archives - Asbestos Case Tracker

November 14, 2023 Bankruptcy / Talc

Johnson & Johnson Considers a Third Talc Bankruptcy to Avoid Further Litigation

With more than two dozen jury trials scheduled over the next year involving contaminated talc claims related to its ubiquitous baby powder, discussions are already at Johnson & Johnson to puts its talc unit, LTL Management, back into bankruptcy for a third time.

J&J’s worldwide vice president of its talc litigation, Erik Haas, revealed during an October 17 earnings call the company is considering using another bankruptcy in hopes of pushing forward with an estimated $8.9 billion settlement of the thousands of claims alleging that …

Posted by: Kerry L. Jones

Court Denies Asbestos Committee’s Motion for Leave to Appeal Bankruptcy Court’s Denial Order Regarding George-Pacific

Court: United States District Court for the Western District of North Carolina, Charlotte Division

As previously reported here in the Asbestos Case Tracker, in 2017 Bestwall LLC became solely responsible for all asbestos-related liabilities of Georgia-Pacific LLC following a divisional merger. After the restructuring, Bestwall filed a voluntary petition for chapter 11 bankruptcy in the Western District of North Carolina to resolve asbestos-related claims against it by way of a trust under 524(g) of the Bankruptcy Code. The Bankruptcy Court subsequently approved the appointment of …

Business and lawyers discussing contract papers with brass scale on desk

July 6, 2023 Bankruptcy

Posted by: Susan R. Allen-Robbins

Johnson & Johnson Bankruptcy Settlement Faces Latest Test in New Jersey Court

Johnson & Johnson’s latest talcum powder litigation challenge exists in a New Jersey bankruptcy court where oral arguments concerning its proposed $8.9 billion settlement occurred during the final week of June 2023. Previously in the year, J&J subsidiary LTL Management attempted to file for bankruptcy in the effort to resolve J&J’s thousands of talcum powder lawsuits. This initial attempt proved fruitless, as the Third U.S. Circuit Court of Appeals ruled LTL Management was not in sufficient financial distress to be eligible for bankruptcy protection.

As …

June 21, 2023 Appeal / Bankruptcy

Posted by: Kerry L. Jones

Circuit Court Affirms Automatic Stay as to Georgia-Pacific’s Asbestos Lawsuits

Court: United States Court of Appeals for the Fourth Circuit

In 1965, Georgia-Pacific LLC (Old GP) merged with Bestwall Gypsum Company, a manufacturer of asbestos-containing products. In 2017, Georgia-Pacific LLC underwent a divisional merger under Texas law. As a result, Old GP ceased to exist, and its assets and liabilities were divided between two new entities as wholly owned subsidiaries of Georgia-Pacific Holdings LLC: Bestwall LLC (Bestwall) and Georgia-Pacific LLC (New GP).

In accordance with this merger, Bestwall became solely responsible for all asbestos-related liabilities. Following …

February 10, 2023 Bankruptcy

Posted by: Stephen Jenkins

Third Circuit Court of Appeals Rejects Johnson & Johnson’s Bankruptcy Plan to Handle Their Baby Powder Litigation

On January 30, the U.S. Court of Appeals for the Third Circuit dismissed the talc bankruptcy filing of Johnson & Johnson’s subsidiary, LTL Management, LLC. After hearing arguments in September, the Third Circuit ultimately reversed the decision from New Jersey Bankruptcy Court and held that LTL was not in the financial distress required because of the value and quality of its assets and was therefore ineligible to petition the bankruptcy court for relief under Chapter 11.

Johnson & Johnson’s plan, as a corporate restructuring …

Dictionary definition of the word Bankruptcy.

October 7, 2022 Bankruptcy / New Jersey

Posted by: Elizabeth M. Lautenbach

Certain State Actions Preliminarily Enjoined in Johnson & Johnson Bankruptcy Case

United States Bankruptcy Court for the District of New Jersey, October 4, 2022

The Asbestos Case Tracker has followed every step in Johnson & Johnson’s bankruptcy case. Recently, Plaintiff LTL Management (“Debtor”) moved to enjoin certain “State Actions” by New Mexico and Mississippi on a preliminary basis, as well as sought a temporary restraining order pending a final hearing. These State Actions include a complaint filed by the State of New Mexico against several defendants including J&J which the court refers to as the …

May 27, 2022 Bankruptcy

Posted by: Elizabeth M. Lautenbach

Pump Manufacturer’s Bankruptcy Case Dismissed Under 11 U.S.C. § 707(a)

U.S. Bankruptcy Court for the District of Connecticut, May 25, 2022

In this bankruptcy action, Judge Manning described The Nash Engineering Company’s (debtor) Chapter 7 case as “anything but ordinary.” Indeed, Judge Manning noted that over 98% of the creditors are contingent, disputed, and unliquidated asbestos personal injury tort claimants. Following two status conferences, the court issued an Order to Show Cause as to why this case should not be dismissed as per 11 U.S.C. §§ 305 or 707(a).

After receiving several responses, the court …

November 18, 2021 Bankruptcy / North Carolina

Posted by: Asbestos Case Tracker

Talc Bankruptcy Case Transferred from North Carolina to New Jersey

U.S. Bankruptcy Court for the Western District of North Carolina, Charlotte Division, November 16, 2021

Debtor LTL Management LLC (LTL) was created through a corporate restructuring before the filing of the instant Chapter 11 case. Johnson & Johnson Consumer Inc. (Old JJCI), a subsidiary of Johnson & Johnson (J&J), was replaced with two new corporate entities: (1) LTL, a Texas limited liability company that converted into a North Carolina limited liability company, and (2) a Texas limited liability company that was merged into J&J and …

October 15, 2021 Bankruptcy

Posted by: Elizabeth M. Lautenbach

Johnson & Johnson’s Indirect Subsidiary Seeks Chapter 11 Protection and Establishment of Trust Relating to Cosmetic Talc Claims

U.S. Bankruptcy Court for the Western District of North Carolina, October 14, 2021

On October 14, 2021, LTL Management LLC, an indirect subsidiary of Johnson & Johnson, filed papers in connection with pursuing Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Western District of North Carolina, Charlotte Division. According to its informational brief, LTL Management seeks to “resolve permanently all mass tort claims relating to its cosmetic talc products in a manner that is efficient and equitable to all parties, including current …

September 16, 2021 Bankruptcy / Bankruptcy Trusts

Posted by: Quincy Conrad

Insurer Liability Remanded for Further Factual Findings as to Statutory Relationship Requirement

U.S. Court of Appeals for the Third Circuit, September 15, 2021

W.R. Grace & Co. (Grace) operated an asbestos mining and processing facility in Montana from 1963 to 1990. After declaring Chapter 11 bankruptcy, Grace emerged and reorganized. Its reorganization plan included the establishment of an asbestos personal-injury trust, through which all asbestos-related personal injury claims against Grace were to be enjoined and channeled. The question before the U.S. Court of Appeals for the Third Circuit panel involved the Grace insurers and whether they could …