Johnson & Johnson Announces that its Subsidiary, Red River Talc LLC, has Filed a Voluntary Prepackaged Chapter 11 Case to Resolve All Current and Future Ovarian Cancer Talc Claims
Johnson & Johnson announced that its subsidiary, Red River Talc , has filed a voluntary prepackaged Chapter 11 bankruptcy case to resolve all current and future ovarian cancer claims related to cosmetic talc litigation in the United States. The proposed bankruptcy plan has received support from approximately 83% of current claimants, exceeding the 75% approval threshold required by the U.S. Bankruptcy Code.
Red River has increased its settlement commitment by $1.75 billion to approximately $8 billion. The plan represents a present value of about $8 billion to be paid over 25 years, totaling approximately $10 billion nominal. This settlement is one of the largest ever reached in a mass tort bankruptcy case.
The company maintains that none of the talc-related claims have merit, citing rejections by independent experts and regulatory bodies. The plan would resolve 99.75% of all pending talc lawsuits against Johnson & Johnson and its affiliates in the United States.
Johnson & Johnson ha annunciato che la sua filiale, Red River Talc, ha presentato una richiesta di fallimento volontario preconfezionato ai sensi del Capitolo 11 per risolvere tutte le attuali e future rivendicazioni di cancro ovarico legate alle cause legali sul talco cosmetico negli Stati Uniti. Il piano di fallimento proposto ha ricevuto il sostegno di circa l'83% degli attuali reclamanti, superando la soglia di approvazione del 75% richiesta dal Codice di Fallimento degli Stati Uniti.
Red River ha aumentato il proprio impegno per il risarcimento di 1,75 miliardi di dollari a circa 8 miliardi di dollari. Il piano rappresenta un valore attuale di circa 8 miliardi di dollari da pagare nel corso di 25 anni, per un totale di circa 10 miliardi di dollari nominali. Questo risarcimento è uno dei più grandi mai raggiunti in un caso di fallimento di torto di massa.
L'azienda sostiene che nessuna delle rivendicazioni legate al talco abbia merito, citando i rifiuti da parte di esperti indipendenti e organi regolatori. Il piano risolverebbe 99,75% di tutte le cause legali pendenti sul talco contro Johnson & Johnson e le sue affiliate negli Stati Uniti.
Johnson & Johnson anunció que su subsidiaria, Red River Talc, ha presentado un caso de bancarrota voluntaria preempaquetada bajo el Capítulo 11 para resolver todas las reclamaciones actuales y futuras por cáncer de ovario relacionadas con litigios sobre talco cosmético en los Estados Unidos. El plan de bancarrota propuesto ha recibido el apoyo de aproximadamente el 83% de los reclamantes actuales, superando el umbral de aprobación del 75% requerido por el Código de Bancarrota de EE. UU.
Red River ha aumentado su compromiso de conciliación en 1,75 mil millones a aproximadamente 8 mil millones de dólares. El plan representa un valor presente de alrededor de 8 mil millones de dólares que se pagarán durante 25 años, con un total de aproximadamente 10 mil millones de dólares nominales. Este acuerdo es uno de los más grandes jamás alcanzados en un caso de bancarrota por agravio masivo.
La empresa sostiene que ninguna de las reclamaciones relacionadas con el talco tiene mérito, citando rechazos de expertos independientes y organismos reguladores. El plan resolvería el 99,75% de todas las demandas pendientes sobre el talco contra Johnson & Johnson y sus afiliados en los Estados Unidos.
존슨 & 존슨은 자회사인 레드 리버 탈크가 미국 내 화장품 탈크 소송과 관련된 모든 현재 및 미래의 난소암 청구를 해결하기 위해 자발적인 사전 포장 제11장 파산 사건을 제출했다고 발표했습니다. 제안된 파산 계획은 미국 파산법이 요구하는 75%의 승인 임계값을 초과한 약 83%의 현재 청구자들의 지원을 받았습니다.
레드 리버는 17억 5천만 달러에서 약 80억 달러로 합의 금액을 늘렸습니다. 이 계획은 25년에 걸쳐 지불 될 약 80억 달러의 현재 가치를 나타내며, 총 100억 달러의 명목 값을 합산합니다. 이 합의는 집단 손해 파산 사건에서 도달한 가장 큰 규모 중 하나입니다.
회사는 어떠한 탈크 관련 청구도 정당성이 없다고 주장하며, 독립 전문가와 규제 기관의 거부를 인용합니다. 이 계획은 미국 내 존슨 & 존슨 및 그 자회사에 대한 99.75%의 모든 미제기 탈크 소송을 해결할 것입니다.
Johnson & Johnson a annoncé que sa filiale, Red River Talc, a déposé une demande de faillite volontaire préemballée au chapitre 11 pour résoudre toutes les réclamations actuelles et futures concernant le cancer de l'ovaire liées aux litiges sur le talc cosmétique aux États-Unis. Le plan de faillite proposé a été soutenu par environ 83% des plaignants actuels, dépassant le seuil d'approbation de 75% requis par le Code de la Faillite des États-Unis.
Red River a augmenté son engagement en matière de règlements de 1,75 milliard à environ 8 milliards de dollars. Le plan représente une valeur actuelle d'environ 8 milliards de dollars à payer sur 25 ans, pour un total d'environ 10 milliards de dollars nominal. Ce règlement est l'un des plus importants jamais atteint dans une affaire de faillite pour préjudice collectif.
L'entreprise soutient qu'aucune des réclamations liées au talc n'a de mérite, citant les refus d'experts indépendants et d'organismes de réglementation. Le plan résoudrait 99,75% de toutes les poursuites en cours concernant le talc contre Johnson & Johnson et ses affiliés aux États-Unis.
Johnson & Johnson gab bekannt, dass ihre Tochtergesellschaft Red River Talc einen freiwilligen, vorab verpackten Insolvenzfall nach Kapitel 11 eingereicht hat, um alle aktuellen und zukünftigen Klagen wegen Eierstockkrebs im Zusammenhang mit kosmetischen Talkumprozessen in den Vereinigten Staaten zu klären. Der vorgeschlagene Insolvenzplan hat Unterstützung von etwa 83% der derzeitigen Antragsteller erhalten und überschreitet damit den erforderlichen Genehmigungsgrad von 75% laut US-Insolvenzgesetz.
Red River hat sein Vergleichsangebot um 1,75 Milliarden auf etwa 8 Milliarden Dollar erhöht. Der Plan stellt einen aktuellen Wert von etwa 8 Milliarden Dollar dar, der über 25 Jahre hinweg zu zahlen ist, insgesamt etwa 10 Milliarden Dollar nominal. Dieser Vergleich ist einer der größten, die jemals in einem Massentortverfahren erreicht wurden.
Das Unternehmen behauptet, dass keiner der Talkum-bezogenen Ansprüche rechtmäßig ist und verweist auf die Ablehnungen durch unabhängige Experten und Regulierungsbehörden. Der Plan würde 99,75% aller anhängigen Talkumklagen gegen Johnson & Johnson und deren Tochtergesellschaften in den Vereinigten Staaten lösen.
- 83% of current claimants support the proposed bankruptcy plan, exceeding the 75% approval threshold
- Settlement commitment increased by $1.75 billion to approximately $8 billion
- Plan would resolve 99.75% of all pending talc lawsuits against Johnson & Johnson and affiliates in the US
- Company has prevailed in approximately 95% of ovarian cases tried to date
- Filing for Chapter 11 bankruptcy for Red River Talc subsidiary
- Commitment to pay approximately $8 billion over 25 years, totaling $10 billion nominal
- Ongoing litigation and potential financial liability related to talc claims
Johnson & Johnson's subsidiary's bankruptcy filing represents a significant financial move to resolve ongoing talc litigation. The $8 billion settlement, paid over 25 years, is one of the largest in mass tort bankruptcy history. This strategic decision could potentially save the company billions in the long run, considering their 95% success rate in ovarian cases tried to date. The
The prepackaged Chapter 11 filing by Red River Talc is a strategic legal maneuver to efficiently resolve the talc litigation. With
This bankruptcy filing could significantly impact J&J's market perception and investor confidence. By addressing
Approximately
Red River Increased its Settlement Commitment by
-
The support far exceeds the
75% approval threshold required by theU.S. Bankruptcy Code to secure confirmation of the Plan. - The Plan is also supported by the Future Claims Representative, an attorney representing the future claimants.
“The overwhelming support for the Plan demonstrates the Company’s extensive, good-faith efforts to resolve this litigation for the benefit of all stakeholders,” said Erik Haas, Worldwide Vice President of Litigation, Johnson & Johnson. “This Plan is fair and equitable to all parties and, therefore, should be expeditiously confirmed by the Bankruptcy Court.”
After extensive negotiations with counsel for claimants who initially opposed the Plan,
-
Red River agreed to commit an additional$1.1 billion -
The Company backed Red River’s commitments and also agreed to contribute an additional
$650 million -
In aggregate, the contemplated settlement represents a present value of approximately
$8 billion $10 billion
The Plan is in the best interests of the ovarian claimants.
- The Plan constitutes one of the largest settlements ever reached in a mass tort bankruptcy case.
-
The Plan affords claimants a far better recovery than they stand to recover at trial. Most ovarian claimants have not recovered and will not recover anything at trial. Indeed, the Company has prevailed in approximately
95% of ovarian cases tried to date, including every ovarian case tried over the last six years. In addition, based on the historical run rate, it would take decades to litigate the remaining cases, and therefore, most claimants will never have “their day in court.” - Counsel representing the overwhelming majority of current ovarian claimants assisted in the development of and support the Plan.
The Plan enables a full and final resolution of the Company’s ovarian talc litigation.
-
The Plan would resolve
99.75% of all pending talc lawsuits against Johnson & Johnson and its affiliates inthe United States . -
The
0.25% remaining pending talc lawsuits relate to mesothelioma and are being addressed outside of the Plan; the Company has already resolved95% of mesothelioma lawsuits filed to date. - The Company previously reached settlement agreements to resolve the State consumer protection claims and all talc-related claims against it in the bankruptcy cases filed by suppliers of the Company’s talc (Imerys Talc America, Inc., Cyprus Mines Corporation, and their related parties).
The Company reiterates that none of the talc-related claims against it have merit. The claims are premised on allegations that have been rejected by independent experts, as well as governmental and regulatory bodies, for decades. Additional information on the Company’s position and the science supporting the safety of talc is available at www.FactsAboutTalc.com.
Court filings and information about Red River’s Chapter 11 case are available on a separate website administered by its claims agent, Epiq, at https://dm.epiq11.com/RedRiverTalc.
About Johnson & Johnson
At Johnson & Johnson, we believe health is everything. Our strength in healthcare innovation empowers us to build a world where complex diseases are prevented, treated, and cured, where treatments are smarter and less invasive, and solutions are personal. Through our expertise in Innovative Medicine and MedTech, we are uniquely positioned to innovate across the full spectrum of healthcare solutions today to deliver the breakthroughs of tomorrow, and profoundly impact health for humanity. Learn more at https://www.jnj.com.
Cautions Concerning Forward-Looking Statement
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding the proposed prepackaged Chapter 11 bankruptcy plan. The reader is cautioned not to rely on these forward-looking statements. The information contained in this press release is for informational purposes only and should not be construed as a commitment by the Company to engage in any specific strategy or course of action. Due to the inherent uncertainty of litigation, the Company cannot predict the timing, ultimate outcome or financial impact of this matter, or any other ongoing or future litigation. The forward-looking statements in this press release are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of LLT Management LLC, Red River Talc LLC and/or Johnson & Johnson. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in Johnson & Johnson’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. None of LLT Management LLC, Red River Talc LLC nor Johnson & Johnson undertakes to update any forward-looking statement as a result of new information or future events or developments. The Company expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this press release.
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Source: Johnson & Johnson
FAQ
What is the purpose of Red River Talc 's Chapter 11 bankruptcy filing?
How much has Johnson & Johnson (JNJ) increased its settlement commitment for talc claims?
What percentage of current claimants support the proposed bankruptcy plan for JNJ's talc litigation?
How many pending talc lawsuits would be resolved by JNJ's proposed bankruptcy plan?
