Plaintiffs lawyers in the talcum powder litigation escalated their attack on Johnson & Johnson, moving on Tuesday to prevent a planned third bankruptcy from being filed outside New Jersey, where two prior Chapter 11 cases were dismissed.
The motion for a temporary restraining order and preliminary injunction comes in a class action filed last month in the U.S. District Court for the District of New Jersey that accused J&J of depriving cancer victims of compensation through multiple fraudulent transfers, such as the “Texas two-step,” which moved talc liabilities to a newly created subsidiary that filed for bankruptcy.
