Johnson & Johnson Ovarian Cancer Victims Vow Fight to Stop J&J's Bankruptcy Scheme

Rhea-AI Summary

On October 14, 2021, lawyers representing over 30,000 women filed lawsuits against Johnson & Johnson (JNJ) regarding cancer claims tied to its talc body powders. They criticize J&J's bankruptcy move to evade legal accountability as hypocritical and unjust, especially given the company's substantial profits. J&J’s new subsidiary, LTL Management LLC, has filed for bankruptcy to manage these claims, proposing a $2 billion settlement fund despite total liabilities estimated at over $25 billion. The legal battle raises concerns for pending trials and could prolong suffering for affected patients.

Positive

• J&J has proposed a $2 billion settlement fund to manage talc-related claims.

Negative

• Total liabilities related to talc products are estimated at over $25 billion.
• Bankruptcy filing creates uncertainty for pending trials involving thousands of cases.
• The move may prolong suffering for ovarian cancer victims and their families.

CHARLOTTE, N.C., Oct. 14, 2021 /PRNewswire/ -- Lawyers who represent more than 30,000 women who have filed lawsuits against Johnson & Johnson (NYSE:JNJ) in connection with its defective talc body powders, including the iconic Johnson's Baby Powder, say they will resist J&J's decision to use bankruptcy to avoid legal responsibility for the cancers tied to those products.

"It seems inconceivable that bankruptcy involving a highly profitable $500 billion company could be contemplated, let alone become reality," says Andy Birchfield of the Beasley Allen law firm, which represents thousands of women and families alleging that use of the company's Baby Powder led to ovarian cancer. "It seems hypocritical that such a company could defend a product it claims to be safe, while seeking bankruptcy protection for marketing that same product it knew to be dangerous."

On Thursday, J&J announced that it had created a separate subsidiary, LTL Management LLC (LTL) to "hold and manage claims in the cosmetic talc litigation." At the same time, J&J placed the subsidiary into bankruptcy, filing in the Western District of North Carolina, Charlotte Division. This venue is considered responsive to companies seeking to shield themselves from legal claims brought about by their defective products.

Mr. Birchfield says that recent abuses of the bankruptcy system mean that members of Congress including Sen. Elizabeth Warren (D-Mass) and Rep. Jerrold Nadler (D-NY) will join talc cancer victims in opposing J&J's bankruptcy plan. An increasing number of bankruptcy experts have voiced concerns about similar previous ploys, as corporate bankruptcies are normally reserved for struggling businesses that need relief from creditors.

"Right behind the Sacklers, the Boy Scouts and USA Gymnastics, here's another example of the wealthy and powerful using bankruptcy as a hiding place to protect their profits and avoid responsibility," says Birchfield.

According to the bankruptcy filing, Johnson & Johnson is proposing to create a $2 billion settlement fund. In the ongoing talc litigation, one single verdict for 20 women exceeded that amount, and total talc-related liabilities are estimated at more than $25 billion. Ovarian cancer is a horrific and deadly disease that exacts both an emotional and financial toll on women and their families. On average, medical expenses related to ovarian cancer caused by talc often exceed $500,000 per victim.

Mr. Birchfield says the filing creates an uncertain future for pending trials, including thousands of talc cases filed in multidistrict litigation in New Jersey federal court.

"As a firm, we are committed to challenging this petition at every level and fighting any attempt by J&J to further delay scheduled trials and prolong the suffering of thousands of ovarian cancer victims and their families," says Mr. Birchfield. "We will fight – no matter how hard and how long it takes – until these women get justice."

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View original content:https://www.prnewswire.com/news-releases/johnson--johnson-ovarian-cancer-victims-vow-fight-to-stop-jjs-bankruptcy-scheme-301400995.html

SOURCE Beasley Allen Law Firm

FAQ

What recent actions has Johnson & Johnson (JNJ) taken regarding talc lawsuit claims?

J&J has filed for bankruptcy through its subsidiary LTL Management LLC, aiming to manage claims related to its talc products.

How much is Johnson & Johnson offering in its proposed settlement fund for talc-related claims?

J&J is proposing a $2 billion settlement fund for managing talc-related claims.

What are the estimated total liabilities for Johnson & Johnson's talc products?

The total liabilities related to talc products are estimated to exceed $25 billion.

Why are victims opposing Johnson & Johnson's bankruptcy filing?

Victims claim the bankruptcy is a tactic to avoid legal responsibility and delay justice for those affected by ovarian cancer.

What impact might J&J's bankruptcy filing have on ongoing lawsuits?

The bankruptcy filing creates uncertainty for pending trials, potentially prolonging the process for thousands of talc-related cases.