Bankruptcy Judge May Reopen Some Johnson & Johnson Talc Cases:
Johnson & Johnson once had one of the cleanest reputations in business. Building from a squeaky-clean reputation for its baby powder and talcum-based products, Johnson & Johnson grew into a multibillion-dollar company. Unfortunately, recent investigations by Reuters and the New York Times revealed that the company has known for decades that its talcum powder was contaminated with asbestos, a known carcinogen.
Johnson & Johnson Bankruptcy Maneuver
Johnson & Johnson and its talc suppliers face more than 38,000 lawsuits from former customers who’ve developed mesothelioma or reproductive and other cancers after using their products for years. In a litigation maneuver designed to avoid paying talcum powder verdicts, Johnson & Johnson created a subsidiary, placed all its lawsuit liabilities with the subsidiary, and then had the subsidiary declare bankruptcy. Typically, the bankruptcy process halts all active litigation against a company. But now, the bankruptcy judge in the matter is rethinking that process.
Two Paths Forward for Talcum Powder Litigation
At a July 6, 2022, hearing, U.S. Bankruptcy Judge Michael Kaplan said he would consider “two very different paths forward” in the bankruptcy. While Johnson & Johnson has asked the bankruptcy court to estimate the number and amount of talcum powder lawsuits, attorneys for the plaintiffs have asked the judge to allow some of the litigation to proceed outside the bankruptcy process.Judge Kaplan indicated he had discussed the matter with U.S. District Judge Freda Wolfson, who is overseeing 35,000 ovarian cancer lawsuits filed against Johnson & Johnson, about the possibility of reopening select cases as bellwether trials. The concern is that a failure to allow some cases to proceed will cause the cases to linger and stagnate while plaintiffs continue to die. The judge asked the parties to make additional written arguments. Before the bankruptcy filing, Johnson & Johnson faced $3.5 billion in verdicts and settlements.
You Need Experienced Legal Advice
If you or someone you love is facing cancer or mesothelioma after using talc-based products, you need skilled legal guidance. An experienced attorney can help determine if filing a lawsuit is your best option. At the Madeksho Law Firm, we’ve been helping clients get justice since 1972, and we can help you too. Call us at 1-888-910-6376 or contact us online. Your consultation is free, and you won’t pay a dime unless we recover compensation on your behalf.
