Johnson & Johnson puts new LTL Management unit into bankruptcy to facilitate talc litigation

By Sarah Lizee

Olympia, Wash., Oct. 14 – Johnson & Johnson announced that newly created subsidiary LTL Management LLC, which was established to hold and manage claims in the cosmetic talc litigation, has filed for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Western District of North Carolina.

Johnson & Johnson said in a press release late Thursday that the filing is intended to resolve all claims related to cosmetic talc in a manner that is equitable to all parties, including any current and future claimants.

Johnson & Johnson and its other affiliates did not file for bankruptcy protection and will continue to operate their businesses as usual, the company said.

Johnson & Johnson said it has agreed to provide funding to LTL for the payment of amounts the bankruptcy court determines are owed by LTL and will also establish a $2 billion trust in furtherance of this purpose.

In addition, LTL has been allocated certain royalty revenue streams with a present value of over $350 million to further contribute to potential costs.

During the Chapter 11 process, all cosmetic talc cases will be stayed pending the outcome of the proceedings.

According to its petition, LTL has $1 billion to $10 billion in both assets and liabilities.

Johnson & Johnson is a consumer products company based in New Brunswick, N.J. The Chapter 11 case number of its LTL Management subsidiary is 21-30589.

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