Shares of Johnson Johnson (NYSE: JNJ) were sinking 4.2% lower as of 11:04 a.m. ET on Monday. The decline came after a U.S. judge ruled against the healthcare giant on Friday.

Judge Michael Kaplan with the U.S. Bankruptcy Court for the District of New Jersey dismissed a Bankruptcy case filed by J subsidiary LTL Management. Johnson Johnson created LTL Management in 2021 as a separate company to bear all of its talc liabilities. This was the second failed attempt to file for Bankruptcy for the subsidiary. 

Johnson Johnson had hoped to move past the dark cloud hanging over its head with litigation over its talc products. Its bankruptcy reorganization plan for LTL included an $8.9 billion settlement to resolve all talc claims.

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Source Fool.com