Drug companies can’t hide behind bankruptcy to end lawsuits, Court says

 J&J Can’t Use Bankruptcy to End Cancer Suits Over Baby Powder, Court Says

Johnson & Johnson baby powderPhotographer: Justin Sullivan/Getty Images

By Steven Church and Jef Feeley

Johnson & Johnson can’t use bankruptcy to resolve more than 40,000 US cancer lawsuits over its now-withdrawn baby powder, a federal appeals court ruled. 

The three-judge panel in Philadelphia sided with cancer victims, who argued J&J wrongly put its specially created unit, LTL Management, under court protection to block juries around the country from hearing the lawsuits and handing out damage awards. 

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