Category: Bankruptcy

Earlier this year, at least four asbestos bankruptcy trusts including WR Grace, Babcock & Wilcox, Pittsburgh Corning and Owens Corning, issued notices regarding their intent to destroy data and documents submitted by claimants that have qualified for payment.

Pursuant to these proposed record retention policies, the trusts plan to begin the destruction of data and documents in for resolved claims that (1) were issued payment more than one year ago, or (2) were withdrawn more than one year ago. Copies of these records will remain …

On June 25, 2024, the Third Circuit Court of Appeals rendered an opinion affirming the New Jersey Bankruptcy Court’s decision to dismiss LTL Management/Johnson & Johnson’s second bankruptcy case for “want of good faith because it was not in financial distress” in IN RE: LTL Management, LLC.

In 2021, Johnson & Johnson first attempted to use bankruptcy to permanently settle all talc claims after substantial litigation had been initiated. Through a complicated series of corporate transactions, J&J claims to have transferred all talc liability to …

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 …

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 …