NEW BRUNSWICK, N.J.,
Oct. 14, 2021 /PRNewswire/
-- Johnson & Johnson (NYSE: JNJ) (the Company) today
announced that LTL Management LLC (LTL), a newly created and
separate subsidiary of Johnson & Johnson, that
was established to hold and manage claims in the
cosmetic talc litigation, has filed for voluntary Chapter 11
bankruptcy protection. This filing is intended to
resolve all claims related to cosmetic talc in a manner that is
equitable to all parties, including any current and future
claimants. Johnson & Johnson and its other affiliates did
not file for bankruptcy protection and will continue to operate
their businesses as usual.
"We are taking these actions to bring certainty to all parties
involved in the cosmetic talc cases," said Michael Ullmann, Executive Vice President,
General Counsel of Johnson & Johnson. "While we continue to
stand firmly behind the safety of our cosmetic talc products, we
believe resolving this matter as quickly and efficiently as
possible is in the best interests of the Company and all
stakeholders."
To demonstrate its commitment to resolving the cosmetic talc
cases and remove any financial objections to the process, Johnson
& Johnson has agreed to provide funding to LTL for the payment
of amounts the Bankruptcy Court determines are owed by LTL and will
also establish a $2 billion trust in
furtherance of this purpose. In addition, LTL has been allocated
certain royalty revenue streams with a present value of over
$350 million to further contribute to
potential costs.
John Kim, Chief Legal Officer of
LTL, said, "With the financial backing of Johnson & Johnson,
coupled with a dedicated trust and significant financial resources
supporting LTL, we are confident all parties will be treated
equitably during this process."
These actions are not a concession of liability but rather a
means to achieve an equitable and efficient resolution of the
claims raised in the cosmetic talc litigation. The Company has won
the majority of cosmetic talc-related jury trials that have been
litigated to date and continues to believe that none of the
talc-related claims against the Company have merit. The claims are
premised on the allegation that cosmetic talc causes ovarian cancer
and mesothelioma, a position that has been rejected by independent
experts, as well as governmental and regulatory bodies, for
decades. More than 40 years of studies by medical experts around
the world continue to support the safety of cosmetic talc.
The determination of an appropriate amount to resolve all
current and future claims will be decided by the Bankruptcy Court
in the Chapter 11 proceedings. This established process will allow
for a more efficient and consistent resolution for all parties.
While LTL pursues this equitable resolution, all cosmetic talc
cases will be stayed pending the outcome of the proceedings.
Johnson & Johnson remains focused on its mission to improve
the trajectory of health for humanity and committed to developing
lifesaving therapies and innovative solutions that help people live
their healthiest lives.
LTL's Chapter 11 case was filed in the U.S. Bankruptcy Court for
the Western District of North
Carolina. Additional information is available on
www.FactsAboutTalc.com and www.LTLManagementInformation.com.
Court filings and information about LTL's Chapter 11 case are
available on a separate website administered by its claims agent,
Epiq, at https://dm.epiq11.com/LTL; by calling Epiq representatives
at (855) 675-3078 from the U.S. or (503) 520-4497 from
international locations; or by emailing Epiq at
LTLinfo@epiqglobal.com.
About Johnson & Johnson
At Johnson & Johnson, we believe good health is the foundation
of vibrant lives, thriving communities and forward progress. That's
why for more than 130 years, we have aimed to keep people well at
every age and every stage of life. Today, as the world's largest
and most broadly-based healthcare company, we are committed to
using our reach and size for good. We strive to improve access and
affordability, create healthier communities, and put a healthy
mind, body and environment within reach of everyone, everywhere. We
are blending our heart, science and ingenuity to profoundly change
the trajectory of health for humanity. Learn more at www.jnj.com.
Follow us at @JNJNews.
Cautions Concerning Forward-Looking Statements
This
press release contains "forward-looking statements" as defined in
the Private Securities Litigation Reform Act of 1995 regarding the
voluntary Chapter 11 bankruptcy filing by LTL Management LLC, a
newly created and separate subsidiary of Johnson & Johnson. The
reader is cautioned not to rely on these forward-looking
statements. The information contained in this press release is for
informational purposes only and should not be construed as a
commitment by the Company to engage in any specific strategy or
course of action. Due to the inherent uncertainty of litigation,
the Company cannot predict the timing, ultimate outcome or
financial impact of this matter, or any other ongoing or future
litigation. The forward-looking statements in this press release
are based on current expectations of future events. If underlying
assumptions prove inaccurate or known or unknown risks or
uncertainties materialize, actual results could vary materially
from the expectations and projections of LTL Management LLC,
Johnson & Johnson Consumer Inc. and/or Johnson & Johnson.
Risks and uncertainties include, but are not limited to:
significant adverse litigation or government action, including
related to product liability claims; economic factors, such as
interest rate and currency exchange rate fluctuations; competition,
including technological advances, new products and patents attained
by competitors; challenges inherent in new product research and
development, including uncertainty of clinical success and
obtaining regulatory approvals; uncertainty of commercial success
for new and existing products; challenges to patents; the impact of
patent expirations; the ability of the company to successfully
execute strategic plans; the impact of business combinations and
divestitures; manufacturing difficulties or delays, internally or
within the supply chain; product efficacy or safety concerns
resulting in product recalls or regulatory action; changes to
applicable laws and regulations, including tax laws and global
health care reforms; trends toward health care cost containment;
changes in behavior and spending patterns of purchasers of health
care products and services; financial instability of international
economies and legal systems and sovereign risk; increased scrutiny
of the health care industry by government agencies. A further list
and descriptions of these risks, uncertainties and other factors
can be found in Johnson & Johnson's Annual Report on Form 10-K
for the fiscal year ended January 3,
2021, including in the sections captioned "Cautionary Note
Regarding Forward-Looking Statements" and "Item 1A. Risk Factors,"
in the company's most recently filed Quarterly Report on Form 10-Q
and in the company's subsequent filings with the Securities and
Exchange Commission. Copies of these filings are available online
at www.sec.gov, www.jnj.com or on request from Johnson &
Johnson. Any forward-looking statement made in this release speaks
only as of the date of this release. None of LTL Management LLC,
Johnson & Johnson Consumer Inc. nor Johnson & Johnson
undertakes to update any forward-looking statement as a result of
new information or future events or developments. The Company
expressly disclaims all liability in respect to actions taken or
not taken based on any or all the contents of this press
release.
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SOURCE Johnson & Johnson