J&J Considering Bankruptcy Split of Baby Powder Division

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[Asia Economy Reporter Yujin Cho] Johnson & Johnson (J&J) in the United States, facing over 2 trillion won in compensation liabilities for selling asbestos-contaminated baby powder, is considering filing for bankruptcy by splitting off the business unit responsible for the compensation liabilities.

On the 18th (local time), major foreign media outlets reported this, citing sources familiar with the matter.

The sources revealed that J&J recently informed the plaintiffs' legal team that it is considering transferring the legal liabilities related to the baby powder lawsuits to a newly established company.

If this plan is implemented, plaintiffs may be forced to accept reduced compensation payments and procedural delays in lawsuits against the split company that files for bankruptcy.

However, citing another source, it was added that this plan has not yet been finalized and may ultimately not be pursued.

This measure is a self-help plan proposed by J&J, which is facing its worst financial crisis due to losses in the baby powder lawsuits, poor vaccine sales by its subsidiary Janssen, and liabilities from the opioid abuse crisis.

Previously, J&J was ordered to pay $2.12 billion (approximately 2.43 trillion won) in damages to ovarian cancer patients in the talc-based baby powder lawsuit.

The plaintiffs claimed that J&J internally knew that the talc contained asbestos, which causes cancer, but did not inform consumers.

J&J announced in May last year that it would stop selling talc-based baby powder products in the United States and Canada, but maintains that its talc-based products are safe, having confirmed through thousands of tests that there is no asbestos.

This content was produced with the assistance of AI translation services.