Johnson & Johnson (JNJ.US) subsidiary Red River Talc LLC made its third attempt to apply for bankruptcy last week to settle about $8 billion in settlements accepted by 83% of baby powder litigants. However, lawyers who have long fought against Johnson & Johnson's claims argued on Monday that the bankruptcy application should be rejected because it violates the precedent of the United States Supreme Court and distorts the purpose of the US bankruptcy system.
According to a recent ruling by the United States Supreme Court earlier this year, Johnson & Johnson cannot force women with ovarian cancer to join the proposed $8 billion settlement agreement.
In June of this year, a US judge rejected by a 5-4 vote the proposed $6 billion agreement by drug maker Purdue Pharma to forcibly include opponents, ending years of addiction claims related to opioid drugs.