A federal bankruptcy judge on Thursday halted roughly 40,000 lawsuits that allege Johnson & Johnson’s (NYSE:JNJ) baby powder and other talc products caused cancer.
The decision is part of J&J’s second attempt to settle thousands of talc cases in bankruptcy proceedings.
J&J in 2021 spun off its subsidiary, LTL Management, to carry its talc-related liabilities and file for Chapter 11 bankruptcy protections.
Judge Michael Kaplan during a hearing Thursday in U.S. Bankruptcy Court in Trenton, New Jersey, put a temporary hold on the suits that will last through mid-June, The Wall Street Journal reported.
J&J won’t have to go to trial over any other talc claims during the pause, but new lawsuits can still be filed against the company, The Journal reported.
Kaplan said during the hearing that J&J has an “uphill battle” ahead, according to the newspaper.
The pause will give J&J time to reach a permanent settlement with plaintiffs in the talc cases. The company recently proposed an $8.9-million settlement for current and future talc-related claims and said it expects to bring that plan to bankruptcy court in mid-May.
J&J in a statement called Kaplan’ decision “a win for claimants” because it brings them “one step closer” to being able to vote on the proposed settlement.
The New Brunswick, New Jersey-based company also said it believes claimants will overwhelmingly support the proposal.
J&J previously said more than 60,000 claimants have already committed to voting in favor of the plan.
JNJ shares added 61 cents to $164.19.
