J&J bankruptcy ruling an ‘incremental negative’ for 3M, says BofA

After the Third Circuit Court of Appeals ruled Johnson & Johnson (JNJ) could not use bankruptcy to resolve talc-related liabilities and dismissed the Chapter 11 case filed by subsidiary LTL Management, BofA analyst Andrew Obin called the news an "incremental negative" for 3M (MMM), which is appealing an Indiana court having previously ruled against 3M’s original bankruptcy in 2022. That court cited the financial condition of Aearo, similar to the reasoning in the ruling against J&J, which will make 3M’s appeal more difficult, according to the firm, which maintains an Underperform rating on 3M shares.