Lawyer Monthly - August 2023

J&J Again Fails to Resolve Talcum Powder Lawsuits in Bankruptcy Florida Judge Rules Against Disney in Ongoing DeSantis Feud Johnson & Johnson’s second attempt to resolve tens of thousands of lawsuits over its talcum powder products in bankruptcy, putting a proposed $8.9 billion settlement aimed at stopping new lawsuits at risk. A Florida judge has rejected a request from Walt Disney Co to throw out a lawsuit filed by an oversight district, a move that could make it harder for the media giant to pursue its case against Governor Ron DeSantis in what has become a protracted feud. first attempted to resolve the lawsuits in 2021, shifting its talcum powder liabilities to new unit LTL Management and then immediately having that company file for bankruptcy. In April 2022, a US appeals court threw the attempt out, arguing that the company was 2022 after Disney criticised a newly introduced law banning discussion of sexuality and gender identity in classrooms. DeSantis proceeded to attack “woke Disney” in public remarks and led lawmakers in passing bills to transfer power over not under sufficient financial stress to warrant bankruptcy protection. J&J said that it would appeal Kaplan’s decision, adding that it would defend itself against lawsuits that are “specious and lack scientific merit”. Disney’s district in the state to the governor, reconstituting the area as the Central Florida Tourism Oversight District. The oversight district has not commented on these latest developments. In a ruling delivered on 28 July, US bankruptcy judge Michael Kaplan said that J&J’s second bankruptcy must be dismissed – like the first – because the lawsuits did not place the company in “immediate financial distress”. Kaplan wrote: "In sum, this Court smells smoke, but does not see the fire” in reference to J&J unit LTL. "Therefore, the emphasis on certainty and immediacy of financial distress closes the door of Chapter 11 to LTL at this juncture." The pharmaceutical giant The oversight district’s case seeks to void what it describes as “backroom deals” favourable to Disney that the company struck with a prior district board earlier in 2023. Should those deals be voided, Disney’s federal case against DeSantis will be greatly disadvantaged. In a statement, a Disney spokesperson said that the company is fully confident that it “will prevail in both the federal and court cases”, adding that the decision “has no bearing” on the federal lawsuit that seeks to “vindicate Disney’s constitutional rights”. The feud between the entertainment empire and Governor DeSantis began in MONTHLY ROUND-UP 9

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