Justin Sullivan
Johnson & Johnson (NYSE:JNJ) is reportedly considering moving its LTL unit to Texas before a third expected bankruptcy filing for the subsidiary, which was established to handle litigation related to its talc powder products.
As reported by Bloomberg, J&J submitted a request last month to the Texas secretary of state’s office to relocate LTL to Texas. The company also intends to rebrand the unit.
In the past, LTL attempted to file for bankruptcy twice in New Jersey, J&J’s home state, but was denied by the bankruptcy court. In its most recent attempt, the court ruled that the unit did not seem to be in immediate financial distress to justify a bankruptcy filing.
J&J established LTL to address the thousands of lawsuits filed regarding the safety of its talc powder products, which plaintiffs claim can lead to cancers like ovarian and mesothelioma. The unit has put forth a proposal to settle all claims for $8.9 billion.
Earlier this month, Bloomberg disclosed that J&J was in negotiations to settle lawsuits filed by over 40 states concerning its marketing of the talc products, with a proposed settlement amount of $700 million.
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