Johnson & Johnson (NYSE:JNJ) said a US judge has temporarily halted most of the tens of thousands of lawsuits alleging the company’s talc products, including baby powder, caused cancer, Reuters has reported.
The decision will pause most of the litigation while J&J tries to reach a permanent settlement with current plaintiffs and sets aside money for future lawsuits.
The company said it has broad support for a proposed US$8.9bn settlement, but lawyers representing talc claimants oppose it.
The J&J subsidiary LTL Management filed for bankruptcy for the second time this month to help finalise the latest deal. This came after a federal appeals court invalidated its first Chapter 11 filing in January, stating the unit was not in financial distress.
The judge in the case has now halted roughly 38,000 talc lawsuits consolidated in a federal district court in New Jersey. He allowed other cases to proceed with depositions and other matters as long as no trials commence. New lawsuits can also be filed against J&J.
Reuters reported Leigh O'Dell, one of the lead lawyers for plaintiffs in cases consolidated in the New Jersey federal court, as saying: "We continue to believe that this bankruptcy effort is illegitimate ... and that stance will be affirmed through the appellate process."
J&J, however, maintains its talc is safe, asbestos-free and does not cause cancer.