Bankruptcy Court Approves Johnson & Johnson Talc Cases:
Johnson & Johnson was once the closest that a corporation could come to being “America’s Sweetheart.” The company built its reputation on the back of Johnson’s Baby Powder, with a squeaky clean, baby soft, sweet-smelling image. Johnson & Johnson’s horizontal diversification has grown to include pharmaceuticals and medical technology. Now, since the company’s launch in 1886, Johnson & Johnson has grown to a multibillion-dollar company, with sales of $93.7 billion in 2021.But the rotten stench pervading Johnson & Johnson’s sweet-smelling baby powder was asbestos, a cancer-causing mineral often found in mineral deposits near talc. After decades of J&J denials that its talc-based products were contaminated with asbestos, investigations by the New York Times and Reuters revealed that the company had known of the contaminations for years. Johnson & Johnson now faces more than 38,000 lawsuits alleging that their asbestos-contaminated talc products led to ovarian and other cancers.
The Texas Two-Step
Recently, a federal bankruptcy court in New Jersey approved Johnson & Johnson’s controversial plan to spin off its liabilities into a new subsidiary. This plan moves more than 38,000 talc lawsuit claims into its new subsidiary, LTL Management, LLC. LTL filed for Chapter 11 bankruptcy protection.Creating a new subsidiary to offload lawsuits or liabilities to minimize or delay lawsuits through bankruptcy protection is sometimes called the “Texas Two-Step.” It’s a controversial legal strategy that members of Congress have vowed to eliminate through legislation.Despite the talc claimants’ arguments that Johnson & Johnson was attempting to shut off future talc lawsuits and delay and minimize the current lawsuits, Judge Michael B. Kaplan sidestepped these claims. In his 56-page opinion, he wrote that he had “a strong conviction that the bankruptcy court is the optimal venue for redressing the harms of both present and future talc claimants in this case — ensuring a meaningful, timely, and equitable recovery.” For now, the LTL bankruptcy will proceed.
You Need Experienced Legal Advice
If you or a loved one has been diagnosed with ovarian cancer that asbestos-contaminated talcum powder products may have caused, you still may be entitled to file a lawsuit and get compensation. You’ll need experienced legal guidance, and the lawyers at the Madeksho Law Firm can help. Give us a call at 1-888-910-6376 or contact us online. Your consultation is free, and you won’t pay anything unless we recover money on your behalf.
