U.S. District Judge Michael A. Shipp dismissed a fraud lawsuit brought by five plaintiffs who alleged Johnson & Johnson used repeated corporate restructurings to shield talc-related liabilities from litigation. The suit, filed as Love v. Red River Talc, No. 24-cv-06320 in the District of New Jersey, accused Red River Talc, a J&J subsidiary, of repeatedly employing a so-called Texas two-step bankruptcy strategy to stall or resolve tens of thousands of claims. Jessica Brennan of Barnes & Thornburg represented Red River Talc. Legal experts say Shipp’s ruling narrows a potential path for plaintiffs who sought to treat corporate use of bankruptcy as a standalone fraud.

Source: Economic Times January 31, 2026 13:05 UTC