Johnson & Johnson Faces Setback in Talc Litigation

In a significant blow to Johnson & Johnson, US Bankruptcy Judge Christopher Lopez 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 products are linked to ovarian cancer.

Judge's Ruling and Market Reaction

Judge Lopez stated that Johnson & Johnson did not belong in bankruptcy, marking the company's third unsuccessful attempt to resolve the litigation through this route. Despite J&J's argument that the increased settlement amount should facilitate approval, opponents countered that the company is not in "financial distress," leading to the proposal's dismissal.

Market Impact: Following the ruling, J&J's shares experienced a 3.04% drop in premarket trading, falling to $160.80 per share.