A federal judge has allowed a Johnson & Johnson spinoff to proceed with a controversial bankruptcy, despite complaints from thousands who say they were harmed by the company's baby powder.
Johnson & Johnson spun off liabilities — including roughly 38,000 lawsuits — linked to claims of asbestos contamination in its baby powder to a new firm, which then declared bankruptcy.
The complaint claims the New Jersey-based company made Black women a "central part" of its business strategy but failed to warn them about the potential dangers of the powder products it was selling.
