The ongoing talcum powder cancer litigation has taken a new turn as Johnson & Johnson (J&J) files for bankruptcy for the third time. This move has reignited discussions about the alleged link between talcum powder and cancer, particularly ovarian cancer and mesothelioma. The controversy surrounding talc-based products has led to thousands of lawsuits against J&J, with plaintiffs claiming that the company’s Baby Powder and other talc products caused their illnesses. This latest bankruptcy filing has an impact on the current talcum powder cancer lawsuits and raises questions about the future of these claims.
Background of J&J’s Talcum Powder Litigation
The talcum powder cancer litigation against Johnson & Johnson (J&J) has a long and complex history. The first lawsuit was filed in 2009 by Deane Berg, alleging that J&J’s talc products caused her ovarian cancer. This case marked the beginning of a wave of legal action against the company. In 2016, J&J faced its first significant setback when a Missouri jury ordered the company to pay $72 million to the family of a woman whose death from ovarian cancer was linked to talc-based products. As the number of lawsuits grew, J&J attempted various strategies to manage the mounting legal challenges, including filing for bankruptcy. By September 2016, at least 1,800 lawsuits had been filed against J&J in St. Louis alone.
Details of J&J’s Third Bankruptcy Filing
On September 20, 2023, J&J’s subsidiary, Red River Talc LLC, filed for bankruptcy protection in Texas. This marks the company’s third attempt to resolve the ongoing talcum powder cancer litigation through bankruptcy. The company proposed a settlement of approximately $8 billion to be paid over 25 years to current and future victims of ovarian cancer allegedly caused by talc-based products.
What is Different About This Bankruptcy Filing?
This latest filing differs from previous attempts as it focuses solely on ovarian and gynecological cancer claims. J&J claims to have secured support from about 83% of current claimants, exceeding the 75% approval threshold required by the U.S. Bankruptcy Code. The settlement proposal includes an additional $1.1 billion contribution to the bankruptcy trust and $650 million for legal fees. However, opponents of the deal have vowed to challenge the bankruptcy filing, potentially seeking its dismissal or transfer to New Jersey.
Potential Impact on Pending Talcum Powder Lawsuits
Johnson & Johnson’s third bankruptcy filing has halted most of the tens of thousands of talcum powder cancer lawsuits, causing significant delays for plaintiffs seeking justice. The move has deeply divided attorneys representing cancer victims, with some supporting the deal as the best way to secure compensation for their clients, while others argue that the settlement value is too low. Critics claim that J&J is abusing the bankruptcy system to deny plaintiffs their right to a jury trial. The outcome of this legal battle could have profound implications for the fate of the “Texas Two-Step” as a corporate defense strategy in mass tort cases.
Cancer Claims Against J&J Continue to Mount
This new bankruptcy filing by J&J represents the company’s latest effort to address the thousands of lawsuits alleging that its talc-based products caused cancer, particularly ovarian cancer and mesothelioma. Despite the bankruptcy filing, some talc-related trials are still proceeding. For example, a Florida state judge recently declared a mistrial in a case where jurors couldn’t reach a verdict on whether J&J’s baby powder caused the cancer that killed a Miami anesthesiologist. Since the previous bankruptcy stay was lifted, over 16,000 new talcum powder lawsuits against J&J have been added to the class action MDL, bringing the total to over 50,000 pending cases.
The Future of the Talcum Powder Litigation
The talcum powder litigation against Johnson & Johnson continues to evolve, with the company’s third bankruptcy attempt adding another layer of complexity to an already intricate legal landscape. As the situation develops, it remains to be seen how courts will respond to this latest strategy and what implications it will have for the thousands of plaintiffs seeking compensation for alleged talc-related injuries.
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