Johnson & Johnson Faces Setback in Talc Litigation

In a significant blow to Johnson & Johnson, US Bankruptcy Judge Christopher Lopez has rejected the pharmaceutical giant's $10 billion proposal to settle thousands of lawsuits. These lawsuits allege that J&J's baby powder and other talc-based products are linked to ovarian cancer.

Judge's Ruling Sparks Market Reaction

The decision marks the third unsuccessful attempt by J&J to resolve the litigation through bankruptcy court. Despite the company's argument that the substantial settlement amount warranted approval, opponents countered that J&J's financial health disqualifies it from bankruptcy protection. This legal setback immediately impacted the company's stock, which fell by 3.04% in premarket trading to $160.80 per share.