In a dramatic turn of events, Reuters has informed a New Jersey bankruptcy judge that Johnson & Johnson’s efforts to block the publication of a story detailing the pharmaceutical giant’s secret bankruptcy spinoff plan have failed. Despite J&J’s claims of improper document leaks, Reuters contends that the story has already been published, rendering any restraining order moot.
The dispute began when J&J accused plaintiffs’ attorneys of leaking confidential documents to Reuters prompting the company to seek a temporary restraining order to prevent the story’s publication. However, Reuters responded by asserting its First Amendment rights and informing the court that the story had already been published, making any injunctive relief irrelevant.
In its letter to the court, Reuters emphasized the seriousness of attempts to restrict press freedom, describing such actions as “the most serious and least tolerable infringement on First Amendment rights.” The news agency also challenged the validity of J&J’s claims, stating that the motion to block publication was based on false statements.
Following the publication of the story, titled “Special Report: Inside J&J’s Secret Plan to cap litigation payouts to cancer victims,” J&J withdrew its request for an immediate hearing on the matter. However, the pharmaceutical company expressed ongoing concerns about confidential documents and indicated its intention to continue discussions with Reuters.
The article, authored by Mike Spector and Dan Levine, sheds light on J&J’s alleged strategy to limit litigation payouts to cancer victims by orchestrating a bankruptcy spinoff months in advance. The plan, known as “Project Plato,” aimed to transfer thousands of personal injury claims to a new subsidiary, LTL Management, which would then declare bankruptcy, leaving plaintiffs to seek compensation from a limited fund.
Despite J&J’s attempts to halt the story’s publication, Reuters remains resolute in its commitment to reporting on matters of public interest. The unfolding legal battle adds a new layer of complexity to the ongoing bankruptcy proceedings involving J&J’s talc unit, LTL Management, which faces numerous personal injury claims related to alleged asbestos contamination in the company’s talc products.
As the multiday trial on motions to dismiss the case and enjoin the prosecution of talc claims approaches, all eyes are on U.S. Bankruptcy Judge Michael B. Kaplan, who has pledged to issue his decision by the end of the month.
