On January 30, 2023, the Third Circuit reversed a bankruptcy court’s decision that Chapter 11 is the optimal means for redressing harms alleged against Johnson & Johnson by a group of talc personal-injury claimants. The case arose from a consolidated appeal by claimants who sought to have LTL’s Chapter 11 petition dismissed on the ground that it was not filed in good faith. In its amicus brief supporting LTL, WLF emphasized the real-world benefit of allowing companies to address liabilities through corporate restructuring and bankruptcy rather than through the mass-tort system. But in a setback for WLF, the Third Circuit ultimately dismissed LTL’s bankruptcy petition because, in its estimation, LTL was not actually in “financial distress” as the bankruptcy code requires.

Documents

WLF amicus brief