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Johnson & Johnson yesterday faced the first trial in almost two years over claims that asbestos in its baby powder and other talc products causes cancer, as it seeks to settle thousands of similar cases in bankruptcy court. Emory Hernandez says that he developed mesothelioma, a deadly cancer, in the tissue around his heart as a result of exposure to J&J's talc products beginning when he was a baby. The company has denied that its talc contains asbestos, which is linked to mesothelioma, or causes cancer. Joseph Satterley, a lawyer for Hernandez, urged jurors in Alameda County, California court to reject the company's defenses and hold it responsible for his client's illness. Allison Brown, a lawyer for J&J, said in her opening statement that the company went to great lengths to ensure that there were no contaminants in its talc. She said that Hernandez's form of mesothelioma was very rare, and more likely related to a family history of heart disease and cancer. J&J subsidiary LTL Management in April filed for bankruptcy in Trenton, New Jersey proposing to pay $8.9 billion to settle more than 38,000 lawsuits, and prevent new cases from coming forward in the future. It is the company's second attempt to resolve talc claims in bankruptcy, after a federal appeals court rejected an earlier bid. Litigation has largely been halted during bankruptcy proceedings, but U.S. Chief Bankruptcy Judge Michael Kaplan, who is overseeing LTL's chapter 11, allowed Hernandez's trial to go ahead because he is only expected to live a short time.

The cancer-treatment specialist GenesisCare has filed for bankruptcy protection, after struggling under a debt load enlarged by a $1.5 billion takeover, the Wall Street Journal reported. Australia-based GenesisCare said today that it would split its U.S. business from operations in Australia, Spain and the U.K. as part of the U.S. chapter 11 reorganization. GenesisCare didn't say how much debt would be affected by the filing. GenesisCare is backed by the U.S. private-equity giant KKR. Starting with a single clinic in 2005, it has grown to more than 300 locations in four countries and over 5,500 employees. “The past three years have presented significant operational and financial challenges, requiring a comprehensive restructuring of the operations and balance sheet of the company,” David Young, who started as GenesisCare’s chief executive in April, said in a statement. GenesisCare has secured $200 million of debtor-in-possession financing from existing lenders, and plans to continue operating without disruption to patient care.

Sam Bankman-Fried is seeking documents from a law firm that advised his defunct FTX cryptocurrency exchange, saying in a court filing that they could help him beat fraud charges, Reuters reported. The former crypto mogul said the documents could prove that he relied on legal advice from Silicon Valley law firm Fenwick & West and did not believe he was breaking the law. Manhattan federal prosecutors must prove he knew his conduct was illegal. Bankman-Fried, the 31-year-old founder of now-defunct FTX Trading, has pleaded not guilty in Manhattan federal court to 13 counts of fraud, conspiracy, illegal campaign contributions and foreign bribery. On Tuesday, he asked a judge to order prosecutors to turn over documents related to Fenwick’s legal advice on matters central to the government’s case, including FTX’s use of disappearing messaging services and failure to properly register with regulators. Bankman-Fried said in the filing that each of the charges against him requires the government to prove he acted willfully and that Fenwick’s legal advice could prove that he is innocent because he thought his actions were aboveboard. Bankman-Fried rode a boom in digital currency to a $26 billion net worth and became an influential political and philanthropic donor before FTX sought chapter 11 protection in November. Prosecutors allege Bankman-Fried stole billions of dollars in customer funds to plug losses in his hedge fund Alameda Research, which collapsed along with FTX last year after its risky cryptocurrency bets backfired.

The Global Tee Co. LLC, a seller of motivational fitness apparel, has filed for chapter 11 bankruptcy protection, citing the effects of the COVID-19 pandemic on the business, Crain's Grand Rapids reported. The Cascade Township, Mich.-based company, which does business as Fitness Tee Co., filed for bankruptcy protection on May 25 in the U.S. Bankruptcy Court for the Western District of Michigan. Global Tee is pursuing chapter 11 under Subchapter V of the U.S. Bankruptcy Code, which allows small businesses to reorganize while allowing owners to retain a stake in the company. Owned by CEO Scott Sandberg, Global Tee listed nearly $190,000 in assets, which include cash on hand, equipment, and blank and finished clothing inventory, according to court filings. That compares with $1.1 million in liabilities, including nearly $658,000 in unsecured claims. In the filing, the company said it “has fallen behind in payments to its creditors, including taxing authorities” who have filed levies on its bank accounts, “which has interrupted cash flow necessary for continuation of (Global Tee’s) business operations.” Creditors with some of the largest priority unsecured claims include the city of Kentwood ($15,000), the Florida Department of Revenue Taxpayer Services ($16,900), the Indiana Department of Revenue ($6,400), the Michigan Department of Treasury ($6,400), the State of Texas Comptroller of Public Accounts ($10,500) and the Ohio Department of Taxation ($9,700).

It’s been over a year since blogger Tasha K lost to Cardi B in a legal battle over defamation. The gossip blogger has now filed for bankruptcy after claiming that she has less than $60,000 in total assets, Vibe reported. The YouTuber made salacious claims that the Bronx rapper had an incurable STD, was a prostitute and used drugs. Cardi B won the $4,000,000 case and has since voiced that she wants her money from Tasha, who’s repeatedly made jokes that she doesn’t have it. On Thursday (May 25) in a Florida federal court, Tasha née Latasha Kebe filed with claims that she can not pay out the hefty coin to the “Up” rhymer. According to Billboard, Tasha’s assets total out to $58,595, including a 2021 Chevrolet Silverado that’s collateral, two Louis Vuitton purses, $95 in her bank account, and her “UnWineWithTashaK” YouTube channel. The monetary value of her channel is listed as “unknown.” The bankruptcy filing reportedly also includes Tasha’s “Google account” asset worth $10,000 that was garnished in 2022 by Cardi’s attorneys. A shared income between Tasha and her husband was also listed at $156,021 in 2021 and $134,861 in 2022, from their online content creation. The document also includes an income of $30,000 per month from the pair.