Johnson & Johnson subsidiary Red River Talc files for Chapter 11 bankruptcy

Johnson & Johnson announced that its subsidiary, Red River Talc, filed a voluntary prepackaged Chapter 11 bankruptcy case in the U.S. Bankruptcy Court for the Southern District of Texas to fully and finally resolve all current and future claims related to ovarian cancer arising from cosmetic talc litigation against the company and its affiliates in the United States. Red River filed the bankruptcy case after it received the support of the overwhelming majority, approximately 83%, of current claimants for the proposed bankruptcy plan. The support far exceeds the 75% approval threshold required by the U.S. Bankruptcy Code to secure confirmation of the Plan. After extensive negotiations with counsel for claimants who initially opposed the Plan, Red River agreed to increase its contribution to the settlement by $1.75B to approximately $8B. The Plan enables a full and final resolution of the Company’s ovarian talc litigation.