Johnson & Johnson's Second Bankruptcy Attempt to Avoid Talc Cancer Lawsuits Faces Opposition

The attempt to evade talc cancer lawsuits through bankruptcy faces opposition over insufficient settlement offer

Tuesday, May 2, 2023 - Johnson & Johnson continues to try and place its LTL management subsidiary into bankruptcy over the objections of the plaintiff's steering committee, the Department of Justice, US Congressional lawmakers, legal scholars, and others that think the plan is a feeble and fraudulent attempt to circumvent responsibility for the injuries and deaths caused by using Johnson's Baby Powder. LTL's initial attempt at bankruptcy was successful but was reversed on appeal and the company must now defend itself in about 35,000 talcum powder cancer lawsuits set to begin in July 2023. The US Department of Justice (DOJ) through its appointed US Trustee has weighed in against allowing LTL to enter bankruptcy for a second time despite the health care conglomerate upping the ante to settle talc cancer claims to $9 billion. Plaintiff attorneys think the amount of the settlement offer is believed to be insufficient when divided among the tens of thousands of potential past, present, and future claimants and some lawyers say the amount will not cover even a few years of medical costs. By comparison in 2018, a Missouri jury awarded 22 women with talcum powder cancer an appeal-adjusted $2.1 billion setting the tone for future litigation. The case is now believed to be the bellwether trial that will force J & J to settle for an amount that could be many times greater than $9 billion. Johnson & Johnson continues to tell consumers that their talcum powder products are safe, pure, and asbestos-free. The company discontinued selling Johnson's Baby Powder containing talc worldwide in 2022 and has replaced talc with cornstarch in their new shipments.

The DOJ's recent request to cancel J & J's LTL bankruptcy request comes with a reiteration that forming a spin-off company and placing legal liabilities in bankruptcy circumvents the intentions of bankruptcy law. " Johnson & Johnson should not be allowed to use a small unit's bankruptcy case to end tens of thousands of cancer lawsuits because the strategy is rooted in bad faith, the U.S. Trustee said in a court filing," writes the DetroitNews. The DOJ said in a statement, " The healthcare products maker is trying for the second time to get itself "out of a jam as cheaply as possible," using the Chapter 11 filing of LTL Management. In the weeks leading up to its second bankruptcy filing, LTL and its ultimate parent, Johnson & Johnson engaged in a series of transactions that LTL admits were designed for no purpose other than creating artificial financial distress, the U.S. Trustee said in the filing." The DOJs objections echoed the sentiments of all 14 members of the MDL steering committee appointed to coordinate the tens of thousands of talcum powder ovarian cancer and mesothelioma cases. A second group of plaintiffs joined the DOJ in opposing the second bankruptcy. The current bankruptcy settlement offer of $9 billion needs at least 75% of claimants to succeed. Spokespersons for Johnson & Johnson told DetroitNews that they are confident present and future claims will soon be settled and that a majority of attorneys representing talc cancer plaintiffs have agreed to the offer.

Information provided by TalcumPowderCancerLawsuit.com, a website devoted to providing news about talcum powder ovarian cancer lawsuits, as well as medical research and findings.