Johnson & Johnson’s Talc Supplier Wants to Declare Bankruptcy: Will the Plan be a Wash?
Many of us grew up with Johnson & Johnson’s products, especially their talcum powder for babies. That ubiquitous blue and white powder container was a staple of homes across the U.S., and J&J leveraged the powder’s popularity to grow into a multi-billion dollar company, selling everything from Band-aids to Tylenol. But by now, almost everyone has heard about the lawsuits faced by the company with the squeaky clean image.
The Lawsuits Against Johnson & Johnson
For years J&J insisted that investigations showing talcum powder contaminated with asbestos, a known carcinogen, were wrong and that its product was safe. But a Reuters investigation in 2018 discovered that J&J had known about asbestos in its talc since the 1970s. Reuters’ investigation also revealed that J&J successfully stymied regulators’ plans to limit asbestos in cosmetic talc products and to investigate harmful health effects caused by talc. Now, J&J faces more than 20,000 lawsuits across the country, and juries have awarded billions of dollars to plaintiffs. J&J no longer sells talc-based powders in the U.S.
J&J’s Talc Supplier Declared Bankruptcy
J&J’s former talc supplier, Imerys Talc, filed for Chapter 11 bankruptcy protection in 2019 and sold the business to Magris Resources Canada, Inc. for $223 million at the end of 2020. The sale proceeds went towards a trust to pay cancer victims who have sued over asbestos-contaminated talc provided by the company. According to the Wall Street Journal, Imerys Talc said the company believed the chapter 11 plan outlined “a clear and comprehensive path forward towards resolving our historic talc-related liabilities.” The official committee representing people with talc-related claims also approved the pending bankruptcy plan. J&J opposed the plan.Imerys Talc’s parent company, Imerys SA, didn’t file for bankruptcy in 2019. But that changed in January of 2021 when Imerys SA announced plans to resolve more than 14,000 lawsuits against it by turning over its North American operations and filing for bankruptcy. This bankruptcy maneuver is an attempt to avoid mass litigation against its talc operation. J&J opposes the plan, believing it will improperly shield the French company from lawsuits and make it easier for people with cancer to sue J&J.If you believe you or someone you love has cancer caused by talcum powder, contact the Madeksho Law Firm at 888-910-6376 or through our online form. Your first consultation will be free, and you won’t pay a fee unless we recover on your behalf.
