10:07 AM EDT, 04/01/2025 (MT Newswires) -- (Updates with the recent stock move in the first paragraph.)

Johnson & Johnson ( JNJ ) shares were down more than 5% in recent Tuesday trading after the company said late Monday that the US Bankruptcy Court for the Southern District of Texas denied its subsidiary Red River Talc's request to confirm its proposed prepackaged bankruptcy plan.

The drugmaker said it plans to return to the tort system to challenge and defeat "meritless talc claims" instead of pursuing an appeal.

J&J has no intention of settling or paying plaintiffs' lawyers, the company said, adding it will reverse about $7 billion of its previous reserve related to the litigation.

"As we have repeatedly stated, in the absence of plan confirmation, we will vigorously present our case in the tort system, starting with the adjudication of the motions pending in the Multi-District Litigation to exclude plaintiffs' experts and to disqualify the lead counsel for its unethical breaches," the company said.

Price: 156.90, Change: -8.94, Percent Change: -5.39