: Johnson & Johnson stock up nearly 3% after talc-litigation unit re-files for bankruptcy
Johnson & Johnson JNJ stock rose nearly 3% in the extended session Tuesday after the company said that its subsidiary LTL Management LLC has re-filed for voluntary Chapter 11 bankruptcy protection in order to obtain the approval of a reorganization plan that will “equitably and efficiently resolve all claims arising from cosmetic talc litigation” against the company. Johnson & Johnson said it has agreed to contribute up to $8.9 billion, payable over 25 years, to resolve “all the current and future talc claims.” That’s an increase of $6.9 billion over the $2 billion previously committed in connection with LTL’s initial bankruptcy filing in October 2021, the company said. LTL has secured commitments from more than 60,000 claimants to support resolutions on these terms, Johnson & Johnson said, adding that neither LTL’s original filing nor Tuesday’s re-filing are an admission of wrongdoing, nor “an indication that the company has changed its longstanding position that its talcum powder products are safe” and believes the claims to be “specious and lack scientific merit.” The stock ended the regular trading day up 1%.
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