Summary
Johnson & Johnson (JNJ) announced on April 4, 2023, that its subsidiary, LTL Management LLC, has re-filed for Chapter 11 bankruptcy protection. This move is intended to facilitate a reorganization plan designed to address all present and future claims related to cosmetic talc litigation in North America. The company has committed to contributing up to $8.9 billion (present value) over 25 years, with a nominal value of approximately $12 billion, to settle these claims.
Key Highlights
- 1LTL Management LLC, a subsidiary of Johnson & Johnson, has re-filed for Chapter 11 bankruptcy protection.
- 2The bankruptcy filing aims to resolve all current and future claims stemming from North American cosmetic talc litigation.
- 3Johnson & Johnson has agreed to contribute up to $8.9 billion (present value) over 25 years to settle these talc claims.
- 4This settlement includes a $6.9 billion charge in the first fiscal quarter, in addition to the $2 billion previously committed.
- 5The company and its other affiliates are not filing for bankruptcy and will continue normal business operations.
- 6The announcement was made via a press release filed as an exhibit to the 8-K.