Cancer Victims’ Lawyers Say J&J Subsidiary’s Second Bankruptcy Must Be Dismissed

Johnson & Johnson’s second attempt to resolve talc lawsuits in bankruptcy should be dismissed as an unprecedented fraud designed to deny plaintiffs just compensation, lawyers representing cancer victims argued in a Monday court filing.

The attorneys contend J&J defied a January appeals court rejection of its first attempt to settle the litigation, noting that a J&J subsidiary refiled for Chapter 11 about two hours after a court dismissed its first bankruptcy. The lawyers blasted the move as the “largest intentional fraudulent transfer in United States history.”

Johnson & Johnson is offering to settle all claims for $8.9 billion, up from its original offer of $2 billion.

Monday’s legal broadside challenged the company’s latest gambit as an unlawful abuse of the Chapter 11 system, echoing earlier objections to its first effort to resolve the lawsuits.

Read the source article at finance.yahoo.com