Cancer victims sue Johnson & Johnson over ‘fraudulent’ bankruptcies

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NEW YORK, May 23 — A group of cancer victims sued Johnson & Johnson on Wednesday, accusing the healthcare company of committing fraud through repeated and continued efforts to...

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“Johnson & Johnson is playing a dark game of chess with this country’s financial and judicial systems,” said Mike Papantonio, an attorney for the cancer plaintiffs. J&J has said that its baby powder and other talc products are safe, do not contain asbestos, and do not cause cancer.J&J first used a corporate maneuver called the “Texas two-step“ to place its talc liabilities into a new subsidiary that then filed for bankruptcy in 2021. The bankruptcy stopped the lawsuits from moving ahead against J&J, although it did not file for bankruptcy itself.

Subsequent transactions, including J&J’s spinoff of its consumer health business Kenvue, were also fraudulent, according to the lawsuit, which also seeks compensatory and punitive damages.

 

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