Court Orders Talcum Powder Cancer Trials To Proceed
Johnson & Johnson failed in its bid to further delay the start of thousands of talcum powder ovarian cancer and mesothelioma lawsuits while they appeal to the US Supreme Court
Sunday, April 2, 2023 - A tsunami of talcum powder cancer lawsuits against Johnson & Johnson (J & J) is set to begin immediately now that the 3rd Circuit Court issued a formal mandate supporting their decision to reverse the company's LTL management bankruptcy scheme. More than 38,000 lawsuits and dozens of trials in progress were effectively halted a year and one half ago by New Jersey bankruptcy Judge Michael Kaplan. Judge Kaplan allowed the Johnson & Johnson spin-off talcum powder liability company to enter into bankruptcy with the rationale that the bankruptcy court was the most efficient and fairest way for the thousands of ovarian cancer and mesothelioma victims to receive compensation. J & J was hoping to buy more time by appealing the bankruptcy reversal to the US Supreme Court, however, The 3rd Circuit Court of appeals reaffirmed their decision. "LTL asked the 3rd Circuit to delay its ruling from taking effect and give the company time to pursue a U.S. Supreme Court appeal. The 3rd Circuit denied that request in a brief written order on Friday, instead directing a U.S. bankruptcy judge to dismiss LTL's Chapter 11 case," according to Reuters. "Judge Michael Kaplan in Trenton, New Jersey, said in February that he was prepared to end the bankruptcy and allow talc lawsuits to resume once the 3rd Circuit issued a formal mandate of its January decision, which it has now done."
Judge Kaplan's initial decision to allow LTL management to enter into bankruptcy was met with outrage by talcum powder cancer lawyers, legal scholars, and US Senators. Some plaintiff's lawyers and consumer groups supported the scheme, but others thought it to be a ploy for J & J to escape responsibility for its reprehensible corporate conduct. The company sought to avoid lottery-like jury awards however, experts assert that punitive damages are an integral part of the justice system used to punish companies that willfully harm the public. Several US legislators also opposed the Texas Two-Step bankruptcy maneuver claiming it absolved Johnson & Johnson of responsibility for its misdeeds. A member of the Senate Judiciary Committee, Senator Richard Blumenthal of Connecticut, referred to the proposal as Johnson & Johnson's "get-out-of-jail-free card," telling Reuters, "This is a slap in the face to the thousands of women and their families who have suffered from ovarian cancer and mesothelioma caused by Johnson & Johnson's talc products." The proposal was also opposed by Oregon Senator Jeff Merkley, who told CNBC "This bankruptcy plan is a gross injustice to the thousands of victims who have suffered from Johnson & Johnson's dangerous talc products. It's a reminder that the bankruptcy system is often used as a tool for corporations to evade accountability for their actions." The head of the House Oversight and Reform Committee, Congresswoman Carolyn Maloney of New York, voiced worry that the proposal may establish a risky precedent. She stated to Reuters, "If companies like Johnson & Johnson can use bankruptcy to evade accountability for the harm caused by their products, it undermines the integrity of our legal system and puts consumers at risk." J&J attempted to stop more than 38,000 lawsuits by using the bankruptcy of its subsidiary, LTL Management, which claimed that the company's Baby Powder and other talc products are contaminated with asbestos. J&J continues to argue that its talc is safe, pure, and asbestos-free.
OnderLaw, LLC -