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☆ Thousands of Black women claim hair relaxers gave them cancer
▼ + stars: | 2023-11-04 | by ( Reuters Graphic | ) www.reuters.com time to read: +12 min

Some of the ads show Black women applying hair products before cutting to a summary of the NIH study’s findings. “We do not believe the science supports a link between chemical hair straighteners or relaxers and cancer,” Revlon said. Lead author White said in a statement in response to Reuters questions that there is currently no strong evidence linking family history of breast cancer to increased risk of uterine cancer. The sisters said they wanted their mother’s death last year following a battle with uterine cancer to mean something. Bush, the St. Louis cosmetologist, joined the litigation in August, she said, because of the possibility that hair relaxers cause cancer.

Persons: Sheila Bush, Bush, Revlon’s, ” Revlon, L’Oreal, ”, Ben Crump, George Floyd, Diandra, ” Debrosse Zimmerman, Jenny Mitchell, Crump, “ it’s, ” Crump, Louis, Jayne Conroy, don’t, Adam Zimmerman, Alexandra White, phthalates, White, Weiss, Porter Kaye Scholer, Jennifer Hoekstra, Zimmerman, “, X Ante, Quiana Hester, Ariana, Nakisha, Patrice Hester, Louis cosmetologist, Mike Spector, Richa Naidu, Kristina Cooke, Diana Novak Jones, Eve Watling, Lawrence Bryant, Alicia Powell, Angela Johnston, Lucy Ha, Vanessa O’Connell, Suzanne Goldenberg Organizations: L’Oreal, Revlon, U.S, National Institutes of Health, Reuters, NIH, Supreme, University of Southern California Gould School of Law, U.S . House, American Cancer Society, U.S . Food, Drug Administration, World Health Organization, Paul, Arnold, FDA, USC, Washington DC Locations: Louis, Olive, U.S, India, Minneapolis, Missouri, Chicago, United States, Rifkind, Baltimore, Houston, Washington, San Diego, Bush

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

THL prevailed in an auction for the company over other private equity firms because its bid was favored by Standish's management, the sources said. The management team and other Standish employees, who collectively own 65% of the company, will retain a 45% stake, with THL holding the remainder, the sources added. London-based investment firm Vitruvian Partners, which first invested in Standish in 2020, is cashing out, the sources added. Private equity firms see fund administrators as attractive investments, given their predictable income streams and the ability to grow these companies through debt-fueled acquisitions. Its latest flagship private equity fund raised $5.6 billion from investors in 2021.

Persons: Thomas H, THL, Standish, Vitruvian, Robert Raynard, Mike Spector, David French, Himani Sarkar, Nick Zieminski Organizations: Lee Partners, Standish Management, Vitruvian Partners, Reuters, Blackstone Inc, TPG Inc, Thomson Locations: Standish, London, Boston , Massachusetts, United States, Europe, New York

Travis Scott poses. REUTERS/Sarah Meyssonnier/File PhotoJune 29 (Reuters) - A Texas grand jury is meeting Thursday to weigh possible criminal charges against rapper Travis Scott and others over a 2021 crowd crush at a musical festival that left 10 dead and injured thousands, Scott’s lawyer confirmed. “Nothing Travis did or failed to do fits within the Texas criminal code,” Schaffer told Reuters. The plaintiffs allege Scott, Live Nation and more than two dozen other defendants let too many people into the venue despite knowing the risks because they wanted the concert to appear packed. The family of one of the people killed settled on undisclosed terms with Scott, Live Nation and others in October 2022.

Persons: Travis Scott, Sarah Meyssonnier, Kent Schaffer, Scott, Travis, ” Schaffer, Robert Hilliard, Jack Queen, Mike Spector, Amy Stevens, Lisa Shumaker Organizations: Cannes, Houston, Festival, Reuters, Attorney’s, Prosecutors, Ticketmaster, Thomson Locations: Cannes, France, Texas, Harris, Houston, New York

[1/2] A Lordstown Motors sign is seen outside the Lordstown Assembly Plant in Lordstown, Ohio, U.S., June 21, 2021. REUTERS/Rebecca Cook/File PhotoNEW YORK, June 27 (Reuters) - U.S. electric truck manufacturer Lordstown Motors (RIDE.O) filed for bankruptcy protection on Tuesday and put itself up for sale after failing to resolve a dispute over a promised investment from Taiwan's Foxconn (2354.TW). Lordstown contends Foxconn is balking at purchasing additional shares of its stock as promised and misled the EV maker about collaborating on vehicle development plans. Lordstown accused Foxconn in that regulatory filing of engaging in a "pattern of bad faith" that caused "material and irreparable harm" to the company. GM agreed to sell the plant to a newly-formed entity called Lordstown Motors founded by the former top executive at an electric truck maker called Workhorse Group.

Persons: Rebecca Cook, Taiwan's Foxconn, Thomas Hayes, Tesla, Lordstown, Foxconn, Edward Hightower, Donald Trump, Mary Barra, Nikola, Stephen Burns, Burns, Elon Musk's Tesla, Mike Spector, Joseph White, Dietrich Knauth, Ben Blanchard, Sarah Wu, Chavi Mehta, Nick Zieminski, Dhanya Ann Thoppil, David Evans Organizations: REUTERS, Lordstown Motors, Foxconn, Hai Precision Industry, General, Reuters, Endurance, EV, Biden, Detroit, GM, Lordstown, U.S . Justice Department, Ford Motor, Stellantis, Thomson Locations: Lordstown, Lordstown , Ohio, U.S, Ohio, Delaware, Foxconn, United States, Northeast Ohio, New York, Detroit, Taipei, Bengaluru

[1/2] A Lordstown Motors sign is seen outside the Lordstown Assembly Plant in Lordstown, Ohio, U.S., June 21, 2021. REUTERS/Rebecca Cook/File PhotoNEW YORK, June 27 (Reuters) - Lordstown Motors (RIDE.O) filed for bankruptcy protection on Tuesday and put itself up for sale after the U.S. electric truck manufacturer failed to resolve a dispute over a promised investment from Taiwan company Foxconn. Lordstown contends Foxconn is balking at purchasing additional shares of its stock as promised, and misled the EV maker about collaborating on vehicle development plans. Even in May, Lordstown warned it might be forced to file for bankruptcy amid uncertainty over the Foxconn investment. GM agreed to sell the plant to a newly-formed entity called Lordstown Motors founded by the former top executive at an electric truck maker called Workhorse Group.

Persons: Rebecca Cook, Lordstown, Foxconn, Edward Hightower, Donald Trump, Mary Barra, Nikola, Stephen Burns, Burns, Elon Musk’s Tesla, ” Lordstown, Mike Spector, Joseph White, Dietrich Knauth, Nick Zieminski Organizations: REUTERS, Lordstown Motors, U.S, Foxconn, Hai Precision Industry, General, Lordstown, Reuters, Endurance, EV, Biden, Detroit, GM, DiamondPeak Holdings, U.S . Justice Department, Ford Motor, Stellantis, Thomson Locations: Lordstown, Lordstown , Ohio, U.S, Taiwan, Ohio, Delaware, Foxconn, United States, Northeast Ohio, New York, Detroit

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.

Companies Johnson & Johnson FollowApril 10 (Reuters) - Johnson & Johnson's renewed effort to resolve talc lawsuits through an $8.9 billion bankruptcy settlement must be dismissed as a "fraudulent scheme" that defies a court order rejecting the company's previous attempt to settle the litigation, according to a court filing from lawyers representing cancer victims. Circuit Court of Appeals that it was not in sufficient "financial distress" to qualify for bankruptcy. J&J maintains that its talc products are safe and do not cause cancer. J&J did not provide an estimate of the total number of talc claims it faces when asked. That's especially true for J&J talc cases, because LTL's first bankruptcy stopped new lawsuits from being filed after October 2021, he said.

☆ Exclusive: Johnson & Johnson considers refiling talc-liability bankruptcy after appeals-court defeat
▼ + stars: | 2023-04-04 | by ( Mike Spector | Thomson Reuters | Mike Spector Is A Correspondent At Reuters Covering Corporate Crises That Span Bankruptcy | ) www.reuters.com time to read: +8 min

[1/2] A bottle of Johnson and Johnson Baby Powder is seen in a photo illustration taken in New York, February 24, 2016. In a court filing Tuesday, lawyers representing a creditors committee of talc plaintiffs said they recently became aware of discussions about a second J&J subsidiary bankruptcy. The J&J subsidiary that was to absorb liability for the talc cases, LTL Management, declared bankruptcy almost immediately after it was created. Andy Birchfield, a plaintiffs' lawyer at law firm Beasley Allen, said on Tuesday that claims “could easily be resolved if Johnson & Johnson would stop playing games and abusing the bankruptcy court process." How the J&J subsidiary might square such a move with the appeals court ruling remained unclear.

SVB said on Monday it was considering strategic alternatives for its assets but did not disclose bankruptcy as one of the potential options. SVB has not made any final decisions on the path it will take and is still attempting to find buyers for assets without filing for bankruptcy, the people said.A bankruptcy filing is only one option SVB is considering. The financial firm is also exploring other restructuring and recapitalization alternatives built around its investment bank and venture capital business, one of the people said. SVB's investment bank and venture capital business are separate divisions of the company from Silicon Valley Bank, which California regulators closed last week after a run by depositors. Reuters reported on Wednesday that the FDIC hired Piper Sandler Companies (PIPR.N) as adviser to sell Silicon Valley Bank.

J&J maintains its talc products are safe. U.S. Bankruptcy Judge Michael Kaplan was set to preside over the hearing for the subsidiary, called LTL Management, in Trenton, New Jersey. In October 2021, J&J offloaded the tidal wave of talc lawsuits it faced onto one of its newly created units, LTL, which then declared bankruptcy. Reuters last year detailed the secret planning of Texas two-steps by Johnson & Johnson and other major firms in a series of reports exploring corporate attempts to evade lawsuits through bankruptcies. LTL declared bankruptcy while J&J avoided seeking Chapter 11 protection, with all its inherent financial and reputational wreckage.

Analysts said the new cash may afford Bed Bath only a few quarters to revive its business, and a weakening economy would diminish any chance of a successful turnaround. Bed Bath declined to comment on Hudson Bay Capital's role in the share sale. "All is on hold," a maker of children's apparel said last week, adding that it had stopped shipping products to Bed Bath since early January. A shopping cart is seen at a Bed Bath & Beyond store in Manhattan, New York City, U.S., June 29, 2022. Reuters reported late last month that Bed Bath had lined up liquidators to close additional stores unless a last-minute buyer emerged.

Hudson Bay Capital is unrelated to Canadian department store chain Hudson's Bay Co. Bed Bath & Beyond declined to comment earlier Tuesday on Hudson Bay Capital leading investment in the share sale. A shopping cart is seen at a Bed Bath & Beyond store in Manhattan, New York City, U.S., June 29, 2022. REUTERS/Andrew KellyPrices on Bed Bath & Beyond bonds due in 2024 climbed to 24 cents on the dollar from around 5 cents, a level still indicating financial distress. Bed Bath shares rose 2.7% in extended trading, after closing down 49% on Tuesday.

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Bed Bath said it was planning to raise just over $1 billion through sales of preferred stock and warrants and from securities when the warrants are exercised. Bed Bath will receive a waiver on its recent bank default should the proposed offering succeed, the company said. Bed Bath & Beyond also appointed Holly Etlin, a bankruptcy expert, as interim chief financial officer. "It’s a similar situation in which a deeply financially distressed company is attempting to sell securities," said Lynn LoPucki, a professor at the University of Florida. Sources have told Reuters that Bed Bath & Beyond has lined up liquidators to close additional stores unless a last-minute buyer emerges.

A lawyer for Johnson & Johnson’s subsidiary said in a statement that the company would seek a rehearing of the panel’s decision by the full 3rd Circuit court. Gordon’s strategy worked in bankruptcy court but set up J&J for failure when it faced the 3rd Circuit appeals panel. Gordon, at the bankruptcy conference, described the lawsuits as “completely unmanageable” and a dire threat to J&J that could go on for decades. The 7th Circuit Court of Appeals is expected to hear arguments in coming months on a challenge to the 3M subsidiary’s bankruptcy. The litigation, they asserted, should be allowed to proceed against Georgia-Pacific because the parent company did not file for bankruptcy.

The firm loaned Bed Bath & Beyond $375 million last year. The chain has said it is closing 87 Bed Bath & Beyond stores and five buybuy BABY stores, in addition to 150 closures announced last year. Bed Bath & Beyond said last week it defaulted on a loan, bringing it closer to bankruptcy. Sources have also told Reuters that Bed Bath & Beyond is considering skipping debt payments due on Feb. 1, a typical move that distressed companies take to conserve cash. Bed Bath & Beyond reported a loss of about $393 million after sales plunged 33% for the quarter ending Nov. 26.

Jan 30 (Reuters) - A U.S. appeals court on Monday shot down Johnson & Johnson's (JNJ.N) attempt to offload tens of thousands of lawsuits over its talc products into bankruptcy court. The appeals court ruling revives those lawsuits. Monday's decision by the U.S. 3rd Circuit Court of Appeals in Philadelphia dismissed the bankruptcy filed by the J&J subsidiary in 2021. The appeals court decision could force companies considering the strategy to more carefully consider its risks, two legal experts said. The Texas two-step has garnered criticism from Democratic lawmakers in Washington, and inspired proposed legislation that would severely restrict the practice.

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Koch unit Georgia-Pacific used a corporate bankruptcy maneuver known as the Texas two-step, forming a new Texas subsidiary, Bestwall, that took on the company's asbestos liability. The latest court documents, filed on Wednesday, provide new detail about how Koch has benefited from the case. Koch has received more than $5 billion since Bestwall filed for bankruptcy in 2017. Representatives for New Georgia-Pacific and Koch Industries did not immediately respond to a request for comment on Thursday. New Georgia-Pacific's shareholder equity is forecast to be about $27.8 billion after accounting for the Koch dividends, according to the Wednesday court filing.

Jan 5 (Reuters) - Bed Bath & Beyond Inc (BBBY.O) on Thursday said it was exploring options including a bankruptcy filing to address the U.S. home goods retailer's plunging sales, dwindling cash and debt load, sending its shares tumbling. Bed Bath & Beyond said it expects to report a third-quarter loss of $385.5 million after sales plunged 33%. The stock was one of the most active on the Nasdaq, with nearly 9.4 million shares traded as of 09:37 ET. Bed Bath & Beyond's fortunes dwindled and its stock collapsed in value after it pursued a strategy focused on its own private-label goods. Activist investor Ryan Cohen, the chairman of GameStop Corp (GME.N), took a stake in Bed Bath & Beyond, which he later sold, sending shares crashing.

☆ Special Report: Boy Scouts, Catholic dioceses find haven from sex abuse suits in bankruptcy
▼ + stars: | 2022-12-30 | by ( Kristina Cooke Mike Spector Benjamin Lesser Dan Levine Disha Raychaudhuri | Kristina Cooke | Mike Spector | ) www.reuters.com time to read: +19 min

The Boy Scouts, for instance, said on a website the group set up for restructuring that it launched a “comprehensive noticing campaign” in the media. He sought compensation in the Boy Scouts bankruptcy in June, long after a deadline of November 16, 2020 for filing claims. The Boy Scouts bankruptcy reorganization plan, approved by a judge in September, halts all lawsuits against the Boy Scouts, local councils, churches and other organizations that chartered scouting activities. His case was halted by the Boy Scouts bankruptcy. Later that year, in August, he filed his lawsuit against defendants including a Boy Scouts local council and DeSandre.

Such warnings could complicate any case the Justice Department might wish to bring, the sources said. A Justice Department spokesperson declined to comment. The Justice Department investigation potentially represents a more serious level of scrutiny because of the possibility of criminal charges against the company or individual executives, the people familiar with the inquiry said. As part of the latest probe, Justice Department prosecutors in Washington and San Francisco are examining whether Tesla misled consumers, investors and regulators by making unsupported claims about its driver assistance technology's capabilities, the sources said. The Justice Department’s Autopilot probe is far from recommending any action partly because it is competing with two other DOJ investigations involving Tesla, one of the sources said.

☆ Tesla faces U.S. criminal probe over self-driving claims, sources say
▼ + stars: | 2022-10-26 | by ( Mike Spector | Dan Levine | ) www.cnbc.com time to read: +6 min

Such warnings could complicate any case the Justice Department might wish to bring, the sources said. The Justice Department investigation potentially represents a more serious level of scrutiny because of the possibility of criminal charges against the company or individual executives, the people familiar with the inquiry said. As part of the latest probe, Justice Department prosecutors in Washington and San Francisco are examining whether Tesla misled consumers, investors and regulators by making unsupported claims about its driver assistance technology's capabilities, the sources said. The Justice Department's Autopilot probe is far from recommending any action partly because it is competing with two other DOJ investigations involving Tesla, one of the sources said. The Justice Department may also face challenges in building its case, said the sources, because of Tesla's warnings about overreliance on Autopilot.

Johnson & Johnson has said it would provide a fair amount of money to the subsidiary to pay claims. Johnson & Johnson, valued at more than $450 billion, had about $31 billion in cash and marketable securities on hand at the end of the third quarter, securities filings show. One would absorb all the talc liability; the other would carry on the business free from the threat of billion-dollar judgments. Levesque replied that the “technical aspect” of the subsidiary bankruptcy wasn’t likely to cause concern about J&J’s creditworthiness. Is that what you're saying?” asked Jeffrey Jonas, a Brown Rudnick lawyer representing a creditors committee comprising talc plaintiffs.

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