Johnson & Johnson Faces Setback in Talc Litigation

In a significant blow to Johnson & Johnson (J&J), U.S. Bankruptcy Judge Christopher Lopez has rejected the pharmaceutical giant's $10 billion settlement proposal. This proposal aimed to resolve thousands of lawsuits alleging that J&J's baby powder and other talc products caused ovarian cancer.

Legal and Financial Repercussions

This marks J&J's third unsuccessful attempt to settle the talc-related lawsuits through bankruptcy court. Despite J&J's argument that the increased settlement amount should facilitate approval, opponents countered that the company does not meet the criteria for bankruptcy, citing its lack of "financial distress."

Market Reaction

Following the judge's decision, J&J's shares experienced a 3.04% decline in premarket trading, dropping to $160.80 per share. This development underscores the ongoing legal and financial challenges facing the company in the wake of the talc litigation.