U.S. judge rejects Johnson & Johnson’s $10 billion baby powder settlement

A U.S. bankruptcy judge rejected Johnson & Johnson’s $10 billion proposal to settle lawsuits alleging its talc products cause ovarian cancer, marking its third failed bankruptcy attempt.

Judge Christopher Lopez ruled that J&J did not belong in bankruptcy and that its settlement lacked sufficient support from plaintiffs while overreaching in shielding non-bankrupt entities. J&J stated it will not appeal but will fight the claims in court.

Opponents argued J&J, a wealthy company, was improperly using bankruptcy to avoid trials, CNBC has reported.

The ruling allows over 60,000 lawsuits to proceed, with plaintiffs seeking their day in court.

Written by B.C. Begley