Johnson & Johnson's Third Attempt At Bankruptcy Takes Several New Twists

Texas may be the venue of choice for a third attempt at bankruptcy and mesothelioma victims could be excluded from the settlement

Tuesday, December 19, 2023 - Johnson & Johnson's third attempt at bankruptcy may be gaining steam as the company has made several new concessions. Sources in the know say that a majority of the claimants who qualify to officially file a talcum powder cancer lawsuit approve of the plan and think that the bankruptcy system offers them the best way to satisfy their claims quickly while there is still time. "A group of 17 law firms and a group called Talc Powder Justice announced their support of the $8.9 billion deal, " according to FiercePharma.com. One of the new twists in the company's third bankruptcy attempt is that it will exclude plaintiffs who have not been officially diagnosed with ovarian cancer. While ovarian cancer plaintiffs comprise the majority of claimants, others have suffered from and died from mesothelioma, a deadly cancer of the delicate lining of the lungs thought to be caused by inhaling asbestos particles in the air from talc. It is interesting to note that attorneys who favor the bankruptcy plan have a high number of claimants on their books, those who wish to file a lawsuit but have not officially done so.

Talcum powder ovarian cancer plaintiffs may suffered due to the deadly and aggressive nature of their disease. Pain that would alert women she may have ovarian cancer often masks itself as normal monthly menstrual discomfort. Women with late-stage ovarian cancer have only a 5% chance of living more than five years past their initial diagnosis according to leading oncologists familiar with the disease. This fact has led some to believe that Johnson & Johnson is taking advantage of the claimant's dire health and making an insufficient offer. According to FiercePharma.com, " A plaintiff's steering committee guiding the multi-district litigation said in a release that J&J's proposal was far from adequate. The 14-person board--made up of lawyers from companies who represent the talc plaintiffs--said it was unanimous in its rejection of J&J's offer.

Johnson & Johnson's third attempt at bankruptcy also is said to have been filed in the State of Texas where the controversial Texas Two-Step bankruptcy scheme originated. Two previous attempts at bankruptcy through the New Jersey bankruptcy court were overturned or failed outright because the company failed to prove that it was in financial distress. Johnson & Johnson, the parent of LTL has approximately $400 billion in assets. FP also goes on to tell readers, "The third bankruptcy would be fast-tracked, with the company collecting votes from claimants before formally filing the new Chapter 11 case. J&J is also open to pursuing a resolution of the litigation through the pending bankruptcy of one of its former talc suppliers, Imerys Talc America Inc., according to one of the people involved. At least 75% of all plaintiffs must approve of the settlement amount for the bankruptcy plan to be granted. Plaintiff attorneys want to rapidly initiate talc cancer trials that have been delayed by Johnson & Johnson's legal maneuvering.

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