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 settlement proposal. This proposal aimed to resolve thousands of lawsuits alleging that J&J's talc-based products, including its baby powder, were linked to ovarian cancer.

A Third Attempt Fails

This marks the third unsuccessful attempt by J&J to settle the litigation through bankruptcy court. The company argued that the increased settlement amount should warrant approval, but opponents contended that J&J, being not in "financial distress," should not qualify for bankruptcy protection.

Market Reaction

Following the judge's decision, J&J's shares experienced a 3.04% drop in premarket trading, settling at $160.80 per share. This decline reflects investor concerns over the ongoing legal challenges and their potential impact on the company's financial health.