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J&J Spinoff Company Files for Bankruptcy to Stem Damage from Talcum Powder Cancer Lawsuits

HeadlineOct 22, 2021

Johnson & Johnson is under fire for using a legal trick to avoid liability over its asbestos-laced talcum powder, which has been linked to cancer. Thanks to a Texas loophole, J&J spun off a separate company to absorb nearly 40,000 lawsuits, then filed that entity for bankruptcy, putting all those cases on pause pending a bankruptcy settlement. J&J heavily marketed its baby powder to African American women for years, with the knowledge its product contained asbestos.

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