Johnson & Johnson's strategy to use bankruptcy to resolve the multibillion-dollar litigation over claims its talc products cause cancer was rejected by a federal appeals court on Monday, but the healthcare conglomerate said it would challenge the ruling. The decision by the U.S.
3rd Circuit Court of Appeals in Philadelphia removed from bankruptcy the company's LTL Management unit, which was facing more than 38,000 legal claims tied to products such as its Johnson's baby powder. J&J shares were down about 3% in midday trading on the New York Stock Exchange.
Don't expect costs to go down for consumers any time soon.
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