Johnson & Johnson faces a critical test on Tuesday over its $10 billion proposal to end litigation alleging that its baby powder caused ovarian cancer, as it tries to convince a judge to sign off on its third attempt to resolve thousands of lawsuits through a subsidiary’s bankruptcy.
U.S. Bankruptcy Judge Christopher Lopez in Houston will decide the fate of the company’s latest Chapter 11 during a weeks-long court hearing weighing competing demands to approve the settlement or end the bankruptcy altogether.
