Could Johnson & Johnson Escape Talcum Powder Liability in Bankruptcy?
Almost every American knows Johnson & Johnson’s baby powder and its squeaky-clean image. But recently, J&J faced allegations that their talcum powder products contain asbestos that caused cancer. For years the company insisted that studies reporting the connection were wrong and its products were safe. But in 2018, investigations by Reuters and the New York Times revealed that J&J had known about asbestos contaminating its talc products since the 1970's. Now the conglomerate faces tens of thousands of lawsuits from plaintiffs who have ovarian cancer, mesothelioma, and other cancers.
The Johnson & Johnson Bankruptcy Plan
In July of 2019, Reuters reported that Johnson & Johnson was exploring a plan to offload their liability for legal judgments in litigation related to talcum powder lawsuits. J&J allegedly planned to create a new business that would seek bankruptcy protection, but the company maintains that it hasn’t yet decided on this course of action. Johnson & Johnson currently holds its talc products in a subsidiary known as Johnson & Johnson Consumer Inc.During negotiations with plaintiffs’ attorneys related to talcum powder litigation, J&J’s attorneys warned that the company could take the step of declaring bankruptcy for the subsidiary, which would result in lower payouts to any victims pursuing litigation. The J&J subsidiary issued a statement to Reuters declaring:Johnson & Johnson Consumer Inc. has not decided on any particular course of action in this litigation other than to continue to defend the safety of talc and litigate these cases in the tort system, as the pending trials demonstrate.
Request for Injunction
As a result, the plaintiffs’ lawyers took the unusual step of asking the U.S. Bankruptcy Court to issue an injunction prohibiting J&J from taking these steps. Most recently, in August of 2021, U.S. Bankruptcy Judge Laurie Selber Silverstein declined to grant the injunction. If J&J does decide to pursue subsidiary bankruptcy, it’s unlikely that the plaintiffs can stop it. However, they may be able to challenge the bankruptcy at a later date.
Contact the Madeksho Law Firm
If you or a loved one has cancer that you believe was caused by using talcum powder, we may be able to help. Contact the Madeksho Law Firm through our online form or by phone at 1-888-910-6376. Your consultation is free, and you don’t pay any fees unless we successfully recover compensation on your behalf.
