Johnson & Johnson (J&J) lost in court again after a judge rejected its $10 billion settlement offer. This March 31 ruling allows tens of thousands of asbestos lawsuits to proceed.
The lawsuits allege that J&J sold talc products contaminated by asbestos, a known carcinogen. Victims say products like its baby powder led to asbestos exposure and related cancers. Is this the end of J&J’s bankruptcy saga?
Third Texas Two-Step Results in Another J&J Loss
J&J used a strategy common with businesses facing asbestos liabilities. Known as the Texas Two-Step, it involves creating a subsidiary company with limited funds. That subsidiary takes on the asbestos liabilities and then files for bankruptcy. Despite two prior rejections, J&J attempted this process again – without success.
J&J planned to fund the subsidiary company with $10 billion. This would cover eligible claims of those with mesothelioma and other cancers. Each ovarian cancer patient would receive between $75,000 and $150,000, depending on the disease’s severity.
The company said this would handle nearly all existing talc claims against it and its affiliates. However, it would also stop similar claims in the future.
The judge rejected the settlement offer, stating he did not believe J&J should be bankrupt. His decision also noted concerns regarding J&J’s claim that victims voted in favor of the settlement.
J&J asserts it won the support of 83% of the 90,000 votes in July of 2024. The judge expressed doubts about that approval percentage. He questioned the legitimacy of some of the votes and noted the process may have been rushed.
After the decision, J&J spokespeople said the company would not appeal. This allows the lawsuits, including more than 60,000 citing ovarian cancer, to proceed.
Financial Help Available for Victims of Contaminated Talcum Powder
Talc often forms in the ground near asbestos. When talc is mined, the two minerals can accidentally mix, contaminating the talc. Various companies add this asbestos-contaminated talc into their products. The contaminated products are then sold to consumers. These products have caused asbestos exposure for thousands of people.
Experienced lawyers at mesothelioma law firms can help people affected by talc products contaminated with asbestos. These attorneys understand asbestos laws and have the resources to build a successful case. People who developed mesothelioma from asbestos in talc products can seek compensation with the help of these lawyers.
