Johnson & Johnson Faces Setback in Talc Litigation

In a significant blow to Johnson & Johnson, U.S. Bankruptcy Judge Christopher Lopez rejected the pharmaceutical giant's proposed $10 billion settlement to address thousands of lawsuits. These lawsuits allege that J&J's talc-based products, including its iconic baby powder, are linked to ovarian cancer.

Legal and Financial Repercussions

This marks the third unsuccessful attempt by J&J to resolve the litigation through bankruptcy court. The company argued that the increased settlement amount warranted approval, but opponents countered that J&J's robust financial health disqualifies it from bankruptcy protection. The decision sent J&J's shares down by 3.04% in premarket trading, with the stock price falling to $160.80.