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Published on 6/23/2023 in the Prospect News Distressed Debt Daily.

Mesothelioma claimant group moves to dismiss Johnson & Johnson unit’s case

By Sarah Lizee

Olympia, Wash., June 23 – An informal group of mesothelioma claimants of Johnson & Johnson subsidiary LTL Management LLC joined calls to dismiss LTL’s Chapter 11 bankruptcy case, according to documents filed Thursday with the U.S. Bankruptcy Court for the District of New Jersey.

The group filed a joinder to the official committee of talc claimants’ motion to dismiss filed on April 24.

Regions 3 and 9 U.S. trustee Andrew R. Vara and an informal group of talc claimants have also asked for the dismissal.

Vara had said in his motion for dismissal that LTL’s second bankruptcy petition “appears to reflect a mistaken belief that the best cure for bad faith is more bad faith.”

The U.S. trustee noted that the new case was filed just 131 minutes after the court dismissed LTL’s previous Chapter 11 case for cause, following a ruling by the U.S. Court of Appeals for the Third Circuit that found that LTL lacked a valid reorganization purpose and that it had sought bankruptcy protection in bad faith.

Johnson & Johnson is a consumer products company based in New Brunswick, N.J. The LTL Management subsidiary filed its initial Chapter 11 bankruptcy petition on Oct. 14, 2021 under case number 21-30589. The new case was filed on April 4 under case number 23-12825.


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