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.
In October 2021, J&J executed a controversial legal maneuver known as a Texas two-step. The tactic involved dividing its consumer business in two and then offloading tens of thousands of talc lawsuits onto a newly created subsidiary, which almost immediately filed for Chapter 11. The goal: to halt the avalanche of lawsuits…
Read More