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J&J advances $6.475 billion settlement of talc cancer lawsuits
  + stars: | 2024-05-01 | by ( ) edition.cnn.com   time to read: +3 min
It will begin a three-month voting period in hopes of reaching consensus on a settlement of all current and future ovarian cancer claims. Ovarian cancer claims account for 99% of the talc-related lawsuits filed against J&J (JNJ), including about 54,000 lawsuits that are centralized in a New Jersey federal court proceeding. In March, J&J received a new chance to contest the scientific evidence linking talc to ovarian cancer in the centralized litigation in New Jersey federal court. But, the litigation has resulted in some large verdicts for plaintiffs, including a $2.12 billion award in favor of 22 women who blamed their ovarian cancer on asbestos in J&J talc. In the past month, J&J was recently ordered to pay $45 million in a mesothelioma case while winning an ovarian cancer case.
Persons: York Reuters — Johnson, Johnson, J, LTL Organizations: York Reuters, J, LTL, & $ Locations: York, New Jersey
Johnson & Johnson baby powder is displayed in San Anselmo, California, on April 5, 2023. Johnson & Johnson on Wednesday said it will pay $6.5 billion to settle nearly all of the thousands of lawsuits in the U.S. claiming its talc-based products caused ovarian cancer. It will begin a three-month voting period for claimants, in hopes of reaching a consensus on a settlement of all current and future ovarian cancer claims. About 99% of the talc-related lawsuits filed against J&J and its subsidiaries stem from ovarian cancer. The pharmaceutical giant said it has already resolved 95% of mesothelioma lawsuits filed to date.
Persons: Johnson, J Organizations: LTL, J Locations: San Anselmo , California
A bottle of Johnson and Johnson Baby Powder is seen in a photo illustration taken in New York, February 24, 2016. LTL's bankruptcy proceedings have largely paused the 38,000 lawsuits against J&J, although one case was allowed to proceed to a $18.8 million verdict in July. But David Molton, an attorney for the official committee representing cancer claimants in LTL's bankruptcy, said that a temporary prohibition on new bankruptcy filings was appropriate, given LTL's repeated bankruptcy filings. Kaplan, who dismissed LTL's second bankruptcy, said he was not inclined to block future bankruptcy filings because circumstances could change in the next six months. But the judge said he was open to further written arguments on that point before issuing a formal decision closing LTL's second bankruptcy case next week.
Persons: Johnson, Mike Segar, J, Michael Kaplan, Greg Gordon, David Molton, Kaplan, LTL's, J's, Dietrich Knauth, Cynthia Osterman Organizations: REUTERS, Johnson, LTL Management, U.S . Department of, J, Thomson Locations: New York, Trenton , New Jersey, LTL's, Texas
Shortly after the opening bell, we will be exiting our position in Johnson & Johnson (JNJ), selling 500 shares at roughly $171 each. Following Monday's trade, Jim Cramer's Charitable Trust will no longer own a position in J & J. We are making the tough decision to exit our J & J position after the U.S. Bankruptcy Court for the District of New Jersey dismissed the bankruptcy plan of the company's subsidiary LTL Management. LTL was created by J & J to silo the talc litigation. How much more will Johnson & Johnson have to pay?
Persons: Johnson, Jim Cramer's, LTL, we've, Jim Cramer, Jim, Brendan McDermid Organizations: U.S, Bankruptcy, District of New, LTL Management, Club, MarketEdge, CNBC, Traders, New York Stock Exchange Locations: Johnson, District of New Jersey, California, New York City
For the second time this year, a court has ruled against Johnson & Johnson’s effort to use a bankruptcy case to limit its exposure to tens of thousands of lawsuits that claim its talcum powder products caused cancer. The plaintiffs claim that the company knew for decades about the risks linked to its talc products, including its signature baby powder. The company created a subsidiary, LTL Management, in 2021 as a maneuver to shield itself from the talc litigation. It proposed that the subsidiary, which had filed for bankruptcy, pay $8.9 billion to resolve all the claims against it. But on Friday, Judge Michael Kaplan of the U.S. Bankruptcy Court for the District of New Jersey, said LTL’s bankruptcy case must be dismissed because the lawsuits did not put the company in “imminent or immediate financial distress.” Earlier this year, the U.S. Court of Appeals for the Third Circuit in Philadelphia dismissed the first bankruptcy effort for the same reason.
Persons: Johnson, Michael Kaplan Organizations: LTL Management, U.S, Bankruptcy, District of, U.S ., Appeals, Third Circuit Locations: District of New Jersey, Philadelphia
U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey, ruled that a J&J company's second bankruptcy, like its first, must be dismissed because the talc lawsuits did not put it in immediate "financial distress." J&J's first bankruptcy gambit began in 2021, when it offloaded its talc liabilities into a new company, LTL Management, and immediately placed that company into bankruptcy. Attorneys representing cancer victims, along with the U.S. Justice Department's bankruptcy watchdog, had called for LTL's second bankruptcy to be dismissed as an abuse of U.S. bankruptcy law. Andy Birchfield, an attorney who represents cancer victims, said the second bankruptcy was meant to keep the talc lawsuits from being heard by juries. J&J argued that the proposed bankruptcy settlement offers a fairer and faster resolution for cancer claimants than litigation in other courts.
Persons: Johnson, Mike Segar, imperiling, Michael Kaplan, J, Kaplan, J's, LTL's, LTL, U.S . Justice Department's, Andy Birchfield, Birchfield, Dietrich Knauth, Mike Spector, Jonathan Oatis, Matthew Lewis, Leslie Adler Organizations: REUTERS, Johnson, LTL Management, U.S . Justice, J, Thomson Locations: New York, U.S, Trenton , New Jersey, California
In this photo illustration, a container of Johnson and Johnson baby powder is displayed on April 05, 2023 in San Anselmo, California. A federal bankruptcy judge on Friday rejected Johnson & Johnson 's second attempt to resolve tens of thousands of lawsuits alleging the company's talc baby powder and other talc-based products caused cancer. J&J in 2021 offloaded those talc liabilities into a new subsidiary, LTL Management, and immediately filed for Chapter 11 bankruptcy protections. "LTL commenced its bankruptcy case in good faith and in strict compliance with the Bankruptcy Code," J&J said in a statement. J&J contends that research and clinical evidence demonstrates that its talc products remain safe.
Persons: Johnson, Michael Kaplan, LTL, J's, J, Erik Haas Organizations: LTL Management Locations: San Anselmo , California, Trenton , New Jersey
But on Tuesday, J & J was ordered to pay $18.8 million after jurors found in favor of 24-year-old Emory Hernandez Valadez who claimed in his lawsuit that he developed mesothelioma, a deadly cancer linked to asbestos, from exposure to J & J talc products. J & J has said that over 60,000 claimants support its latest $8.9 billion settlement to be paid out over 25 years. Johnson & Johnson issued an official statement following the verdict in favor of Valdez, intending to appeal. Even so, J & J got a few of price target increases on Wall Street on Friday. The higher growth pharmaceuticals and medical technology businesses are remaining as the new J & J.
Persons: Johnson, J's, Jim Cramer, Jim, J, Emory Hernandez Valadez, we're, there's, Moshe Maimon, Levy, Maimon, Michael Kaplan, Kaplan, Erik Haas, Thursday's, Haas, Jim Cramer's, Justin Sullivan Organizations: Johnson, LTL Management, J, Credit Suisse, AAA, CNBC, & ' $, & $ Locations: California, American, Levy Konigsberg, Valdez, Stifel, Kenvue, San Anselmo , California
The jury ruled in favor of Emory Hernandez Valadez, who filed suit last year in California state court in Oakland against J&J, seeking monetary damages. The six-week trial was the first over talc that New Brunswick, New Jersey-based J&J has faced in almost two years. Hernandez will not be able to collect the judgment in the foreseeable future, thanks to a bankruptcy court order freezing most litigation over J&J's talc. Jurors heard from Hernandez's mother, Anna Camacho, who said she used large amounts of J&J's baby powder on her son when he was a baby and through childhood. Tens of thousands of plaintiffs have sued, alleging that J&J's baby powder and other talc products sometimes contained asbestos and caused ovarian cancer and mesothelioma.
Persons: Johnson, Emory Hernandez Valadez, Hernandez, Erik Haas, Anna Camacho, Michael Kaplan, LTL, J, Brendan Pierson, Will Dunham, Sandra Maler Organizations: Johnson, J, Reuters, View, LTL Management, LTL's, Thomson Locations: California, Oakland, Brunswick , New Jersey, Trenton , New Jersey, New York
Johnson & Johnson was ordered to pay $18 million to a man who said he got cancer from baby powder. But these cases are on hold after LTL Management, a subsidiary of Johnson & Johnson, filed for bankruptcy in April. The six-week trial for Valdez's case was the exception, and is the first in two years involving these allegations against Johnson & Johnson. Johnson & Johnson stopped selling talc-based baby powder in 2020, offering a cornstarch-based version instead. Lawyers for Valadez and Johnson & Johnson did not immediately respond to requests for comment sent outside regular business hours.
Persons: Johnson, Anthony Hernandez Valadez's, he's, Anthony, Emory, Hernandez Valadez, Michael Kaplan, Valadez, Joe Satterley, Satterley, Erik Haas, who've, Johnson's Haas, LTL Organizations: Service, Johnson, LTL Management, Valadez Locations: Wall, Silicon, California, Johnson, New Jersey
Johnson & Johnson must pay $18.8 million to a California man who said he developed cancer from exposure to its baby powder, a jury decided on Tuesday, a setback for the company as it seeks to settle thousands of similar cases over its talc-based products in US bankruptcy court. The six-week trial was the first over talc that New Brunswick, New Jersey-based J&J has faced in almost two years. Hernandez will not be able to collect the judgment in the foreseeable future, thanks to a bankruptcy court order freezing most litigation over J&J’s talc. Jurors heard from Hernandez’s mother, Anna Camacho, who said she used large amounts of J&J’s baby powder on her son when he was a baby and through childhood. Tens of thousands of plaintiffs have sued, alleging that J&J’s baby powder and other talc products sometimes contained asbestos and caused ovarian cancer and mesothelioma.
Persons: Johnson, Emory Hernandez Valadez, Hernandez, Erik Haas, , Anna Camacho, Michael Kaplan, LTL, J Organizations: J, Reuters, View, LTL Management, LTL’s Locations: California, Oakland, Brunswick , New Jersey, Trenton , New Jersey
J & J has said that more than 60,000 claimants support its latest proposition. This is the first J & J talc trial in about two years. JNJ YTD mountain J & J year-to-date stock performance The unresolved lawsuits against J & J have, in part, weighed on the company's stock. The MedTech and Pharmaceuticals units remained and make up the new J & J. Traders wear Johnson & Johnson coats at the NYSE.
Persons: Johnson, J's, Emory Hernandez, Hernandez, Anthony, LTL, Michael Kaplan, Kaplan, , Jim Cramer, Jim, J, Jim Cramer's, Adam Jeffery Organizations: LTL Management, J, Johnson, — Chemours, DuPont, CNBC, AAA, Pharmaceuticals, Traders, NYSE, & ' $ Locations: California, North America, U.S
J&J has consistently denied that its now-discontinued talc baby powder contains asbestos or causes cancer. Satterley asked jurors to award Hernandez punitive damages about nine times greater than so-called compensatory damages, which include $3.8 million for his medical costs as well as damages for pain and suffering. The U.S. Supreme Court has found that punitive damages should generally be no more than nine times compensatory damages, and that a higher ratio can be reduced on appeal as excessive. J&J has said its talc products are safe and do not contain asbestos, which has been linked to mesothelioma. J&J said in bankruptcy court filings that the costs of its talc-related verdicts, settlements and legal fees have reached about $4.5 billion.
Persons: Johnson, Mike Segar, ” Joseph Satterley, Emory Hernandez Valadez, Satterley, Hernandez, Allison Brown, , Michael Kaplan, LTL, J Organizations: Reuters, REUTERS, Alameda County Superior Court, U.S, Supreme, LTL Management, LTL’s Locations: California, Johnson, New York, Alameda County, Trenton , New Jersey
The deal has divided lawyers representing cancer victims, many of whom claim that J&J has created the illusion of widespread support for a settlement that would deny plaintiffs just compensation. Johnson & Johnson is attempting to use the second bankruptcy of its subsidiary LTL Management to resolve all current and future claims stemming from its talc products. LTL quickly filed for bankruptcy again, arguing that its second effort has won more support from plaintiffs. The proposed settlement would resolve all of those unfiled claims, as well as any future claim alleging that a J&J talc product caused cancer. Mikal Watts, an attorney who supports the deal and says he has 17,000 talc clients, said that he did not agree with J&J statements about "secured commitments."
Persons: Brendan McDermid, Johnson, Johnson's, LTL's, LTL, U.S . Justice Department's, Moshe Maimon, Mikal Watts, Watts, Jim Murdica, Maimon, Murdica, Michael Kaplan, Kaplan, Dietrich Knauth, Alexia Garamfalvi, Stephen Coates Organizations: REUTERS, Johnson, Management, U.S . Justice, J, Thomson Locations: New York City, U.S, Trenton , New Jersey
J&J has said its talc products are safe and do not contain asbestos. Attorneys representing cancer victims, along with the U.S. Justice Department's bankruptcy watchdog, have called for LTL's second bankruptcy to be dismissed as an abuse of U.S. bankruptcy law. Cancer victims who oppose the bankruptcy settlement have said that the second bankruptcy recycles a failed legal strategy to keep their cases from being heard by juries. Circuit Court of Appeals, has said he expects to rule on whether to dismiss LTL's second bankruptcy by early August. Erik Haas, J&J's worldwide vice president for litigation, said in a statement last week that the proposed bankruptcy settlement offers a fairer and faster resolution for cancer claimants than litigation in other courts.
Persons: Johnson, LTL Management's, LTL, U.S . Justice Department's, recycles, Michael Kaplan, Kaplan, LTL's, John Kim, Jim Murdica, Mikal Watts, Erik Haas, J, Watts, Dietrich Knauth, Alexia Garamfalvi, Will Dunham Organizations: Johnson, U.S . Justice, Circuit, J, Thomson Locations: New Jersey, Trenton, Philadelphia, LTL, New York
Companies Johnson & Johnson FollowJune 26 (Reuters) - A California man suing Johnson & Johnson (JNJ.N) told jurors on Monday how his life was upended by a cancer diagnosis that he blames on using the company's baby powder since childhood, as the first trial over the product in nearly two years neared its end. J&J has denied that its baby powder contained asbestos or causes cancer. He also said he did not remember his doctor ever telling him that baby powder caused his cancer. Earlier in the day, jurors heard from Hernandez's mother, Anna Camacho, who said she used large amounts of J&J's baby powder on her son when he was a baby and through childhood. Hernandez's trial, expected to conclude later this week, comes as J&J seeks to resolve thousands of similar talc lawsuits through a settlement.
Persons: Johnson, Emory Hernandez, J, Hernandez, Anthony, Allison Brown, Anna Camacho, Michael Kaplan, Kaplan, Brendan Pierson, Alexia Garamfalvi, Matthew Lewis Organizations: Johnson, Alameda County Superior Court, View, LTL Management, Chief U.S, U.S, Thomson Locations: California, Alameda County, Emory, Trenton , New Jersey, New Jersey, New York
Eli Lilly also is expected to present data on another weight-loss drug called orforglipron, which patients take orally instead of through an injection. Retatrutide, Mounjaro and weight-loss drug Wegovy, produced by rival Novo Nordisk (NVO), are all injectable. But if the data were to fall short of expectations, the analysts don't foresee much downside to J & J shares. However, with JNJ-2113, Morgan Stanley noted that J & J management has touted its efficacy profile "without the baggage of a JAK label." J & J has consistently denied those accusations.
Persons: Eli Lilly, Johnson, Morgan Stanley —, Eli Lilly Eli Lilly, Morgan Stanley, Eli Lilly's Mounjaro, Mounjaro, Lilly's, retatrutide, hasn't, haven't, Jim Cramer's, Jim Cramer, Jim, AJ Mast Organizations: American Diabetes Association, Novo Nordisk, U.S . Food, Drug Administration, Pfizer, Novo Nordisk's, Johnson, American Academy of Dermatology, topline, J's, LTL Management, CNBC, Bloomberg, Getty, & ' $ Locations: U.S, Novo, Indianapolis , Indiana
NEW YORK (Reuters) -A U.S. judge on Friday dismissed the bankruptcy of 3M subsidiary Aearo Technologies, rejecting an effort to resolve nearly 260,000 lawsuits alleging that 3M military earplugs caused hearing loss for veterans and U.S. service members. 3M and Aearo had argued that the earplug litigation had spiraled out of control and could be resolved only in bankruptcy. Graham acknowledged that the earplug litigation was “staggering,” representing 30% of all cases currently pending in the federal district courts. Those appeals could “fundamentally change the trajectory” of the earplug lawsuits, 3M said. 3M’s bankruptcy strategy mirrors a similar effort by Johnson & Johnson, which has attempted to resolve lawsuits through the bankruptcy of a newly created subsidiary, LTL Management.
Persons: Brendan McDermid, Jeffrey Graham, Aearo, Graham, Bryan Aylstock, Chris Seeger, ” “, ” Aylstock, Seeger, Johnson, J, LTL Organizations: YORK, Aearo Technologies, New York Stock Exchange, REUTERS, 3M, Aearo, U.S, Circuit, Johnson, LTL Management Locations: U.S, New York City, Indianapolis, Pensacola , Florida, Florida
The company has denied that its talc contains asbestos, which is linked to mesothelioma, or causes cancer. J&J in a statement on Wednesday said it "deeply sympathizes with anyone suffering from cancer and understands they are looking for answers. It is the company's second attempt to resolve talc claims in bankruptcy, after a federal appeals court rejected an earlier bid. Still, the outcome of the trial could influence whether other plaintiffs decide to join in the proposed settlement. J&J and LTL have argued bankruptcy delivers settlement payouts more fairly, efficiently and equitably than a “lottery” offered by trial courts, where some litigants get large awards and others nothing.
Persons: Johnson, Emory Hernandez, Joseph Satterley, Hernandez, Satterley, J, Michael Kaplan, LTL, Brendan Pierson, Alexia Garamfalvi, Bill Berkrot Organizations: Johnson, Wednesday, LTL Management, LTL's, Thomson Locations: Alameda County , California, Trenton , New Jersey, New York
Companies Johnson & Johnson FollowNEW YORK, May 16 (Reuters) - Johnson & Johnson (JNJ.N) has set aside $400 million to resolve U.S. state consumer protection actions as part of its broader $8.9 billion effort to settle claims that its Baby Powder and other talc products cause cancer. LTL's bankruptcy plan would pay $400 million into a separate trust for claims filed by state attorneys general alleging that J&J violated state unfair business practices and consumer protection laws by misleading consumers about the safety of its talc products. Several states had begun consumer protection actions against J&J before LTL's first bankruptcy filing stopped those investigations from moving forward in 2021. New Mexico and Mississippi said in their motion to dismiss that LTL's renewed bankruptcy violates state law enforcement powers by attempting unilaterally to cap the company's liability for state consumer protection actions. From there, the proposed settlement applies discounts depending on the type and severity of cancer, the individual's age, history of talc use and other factors.
In this photo illustration, a container of Johnson and Johnson baby powder is displayed on April 05, 2023 in San Anselmo, California. A federal bankruptcy judge on Thursday halted roughly 40,000 lawsuits that allege Johnson & Johnson 's baby powder and other talc products caused cancer. Amid the ongoing legal fights, J&J has continued to deny the allegations that its talc products caused cancer. The suits allege J&J's talc products were contaminated with the carcinogen asbestos, which caused ovarian cancer in thousands of individuals. Some lawsuits link several deaths to J&J's talc products.
U.S. Bankruptcy Judge Michael Kaplan put most of the litigation temporarily on hold during a hearing in Trenton, New Jersey. J&J says it has broad support for a proposed $8.9 billion settlement, a contention disputed by lawyers representing tens of thousands of talc claimants who oppose it. “I have more questions than answers,” Kaplan said during a Thursday court hearing, referring to arguments made to him about the second bankruptcy case earlier this week. The judge halted roughly 38,000 talc lawsuits consolidated in a federal district court in New Jersey. With regard to other cases, he allowed them to proceed so long as no trials commence.
LTL has said litigation against J&J would imperil its effort to negotiate a comprehensive settlement of all current and future talc claims in its bankruptcy. Before the talc lawsuits could resume, LTL filed for bankruptcy a second time, re-opening the legal battle over the bankruptcy's legitimacy. It has said its second bankruptcy is different because it has less funding available and more plaintiff support for a settlement. U.S. Bankruptcy Judge Michael Kaplan agreed to protect J&J from lawsuits during LTL's first bankruptcy, saying at the time it offered the best way to fairly resolve all of the talc lawsuits together. Kaplan, who is also presiding over the second bankruptcy, will now decide whether to stop the lawsuits again to give LTL a second shot at a bankruptcy settlement.
Johnson & Johnson (JNJ) earnings Q1 2023
  + stars: | 2023-04-18 | by ( Annika Kim Constantino | ) www.cnbc.com   time to read: +5 min
Johnson & Johnson shares fell Tuesday after the company reported adjusted earnings and revenue that topped Wall Street's expectations, but lowered its sales guidance for its pharmaceutical business. J&J is now forecasting 2023 sales of $97.9 billion to $98.9 billion, about $1 billion higher than the guidance provided in January. Lawsuits allege the company's talc products were contaminated with the carcinogen asbestos, which caused ovarian cancer in thousands of individuals. Some suits link several deaths to J&J's talc products. Read the full J&J earnings report.
Companies Johnson & Johnson FollowApril 18 (Reuters) - Johnson & Johnson (JNJ.N) on Tuesday cautioned investors over the lingering impact of inflation-driven costs this year as the healthcare conglomerate issued a conservative full-year profit forecast, and its shares fell more than 2%. J&J also said it expected a steep decline in sales of its blockbuster Crohn's disease drug Stelara once it loses U.S. patent protection in late 2023. J&J, the first large drugmaker and medical device manufacturer to report earnings, raised the midpoint of its full-year profit forecast by 10 cents despite beating first-quarter estimates by 18 cents. A recovery in medical procedures after being weighed down by hospital staffing shortages helped the medical device unit post sales of $7.48 billion, topping analysts' estimates of $7.31 billion. Consumer health sales rose 7.4% to $3.85 billion, surpassing estimates of $3.62 billion, powered by price hikes to offset the impact from inflation.
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