Johnson & Johnson (NYSE:JNJ) stock is a hot topic on Wednesday after the company proposed a $6.5 billion settlement over talc cancer lawsuits.
Johnson & Johnson is seeking to bankrupt LTL Management as part of its settlement proposal. This is a subsidiary that was created for the sole purpose of absorbing the company’s talc cancer lawsuits.
Previous attempts at this have been made, but the court blocked it both times. This time around, claimants will get to vote on the matter. Johnson & Johnson claims that the majority of claimants are in favor of this settlement agreement.
Johnson & Johnson Worldwide Vice President of Litigation Erik Haas said the following to CNBC about this settlement:
“We firmly believe this plan is in the best interest of claimants and should receive a favorable and immediate confirmation from the bankruptcy court […] As that track record shows, most of bearing claimants have not recovered, nor are they expected to ever recover anything at trial.”
How This Affects JNJ Stock
Investors in JNJ stock are excited about the prospect of the company putting these lawsuits behind it. The company has been dealing with allegations that its talc products cause ovarian cancer for years now.
JNJ stock is up 4.4% as of Wednesday morning with roughly 5 million shares traded. Its daily average trading volume is about 7.6 million shares.
There are more stock market stories worth diving into below!
We have all of the hottest stock market news ready to go on Wednesday! A few examples include what’s happening with Pinterest (NYSE:PINS), Cameco (NYSE:CCJ) and Advanced Micro Devices (NASDAQ:AMD) stock today. All of that info is ready to go at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
