Lawsuits Against Johnson & Johnson Might Resume If Bankruptcy Appeal Prevails
Johnson & Johnson has succeeded in halting about 38,000 individual talcum powder cancer lawsuits filed against them.
Saturday, January 21, 2023 - Legal experts, scholars, talcum powder cancer lawyers, and about 40,000 plaintiffs themselves are anxiously awaiting the outcome of the appeal of Johnson & Johnson's LTL management bankruptcy. The bankruptcy is presided over by the Honorable Michael B. Kaplan in the United States Bankruptcy Court in the District of New Jersey where Johnson & Johnson is domiciled. The next hearing will be conducted live via Zoom on Tuesday, February 14, 2023, at 10:00 a.m. EST. Regardless of the outcome of the appeal, either side is certain to appeal to the US Supreme Court. The twist, however, is that should the plaintiffs win the appeal, lawsuits against the company may be permitted to restart, once again exposing Johnson & Johnson's financial future to uncertainty. More than 38,000 women with ovarian cancer and men and women with mesothelioma allege that using Johnson's Baby Powder exposed them to asbestos causing illness that developed into cancer.
Johnson & Johnson's Texas Two Step bankruptcy scheme has come under criticism from legal experts, plaintiff attorneys, and United States lawmakers for potentially denying US citizens of their rights in court. According to Bloomberg News, "A three-judge panel in Philadelphia heard arguments about LTL Management's Chapter 11 case Monday and will decide later whether the case was filed in good faith, or should be thrown out because J&J and its units don't face immediate financial distress. Should J&J and LTL lose, juries would once again hear talc cancer claims, leaving J&J facing legal and financial uncertainties as it fights individual cases around the country." Attorneys arguing for the Johnson & Johnson talcum powder cancer victims think that the J & J bankruptcy provides the company with a litigation advantage over the plaintiffs and would facilitate an unfair settlement. "The timing suggests you did this for litigation advantage," Judge Luis Felipe Restrepo asked during an unusual, three-hour hearing on Monday. "You concede there is a litigation advantage?" according to Bloomberg. Attorneys for Johnson & Johnson have said that the bankruptcy court could prevent plaintiffs from receiving "lottery-sized" jury awards that did not reflect the plaintiff's damages but were awarded to punish the company, Plaintiff attorneys responded that the jury have been inflamed by the company "reprehensible corporate behavior" and that the billions of dollars awarded was punishment for selling a product that "killed people." Even though Johnson & Johnson has more than $400 billion in liquid assets, the company could be threatened with insolvency should individual Johnsons Baby Powder lawsuits be allowed to resume. Johnson & Johnson has discontinued selling Johnson's Baby Powder made with talc worldwide for the time being, and replaced talc with cornstarch, a less toxic ingredient. Nonetheless, mothers concerned with their child's long-term health may shy away from the brand altogether, especially when they are told that executives for J & J knew for more than half a century that their talc supply was contaminated with carcinogenic asbestos, according to attorneys, and did nothing to warn mothers and other consumers of the iconic baby powder.