Lawyers for Ovarian Cancer Victims Urge NO Vote on J&J’s Latest Bankruptcy Plan

Rhea-AI Summary

Lawyers representing ovarian cancer victims are urging a NO vote on Johnson & Johnson's (NYSE:JNJ) latest $6.5 billion bankruptcy settlement plan. They claim J&J is misleading potential claimants and attempting to secure approvals from individuals without documented ovarian cancer diagnoses. The attorneys argue this strategy could reduce payments to legitimate victims who have incurred losses of $500,000 or more.

The deadline for voting on the bankruptcy proposal is July 26, 2024. Opponents of the plan note that approval would eliminate rights to a jury trial for current and future victims. Since 2016, juries have awarded over $5.4 billion in damages to ovarian cancer claimants, although this amount has been reduced in subsequent court proceedings.

Positive

• None.

Negative

• J&J faces opposition to its $6.5 billion bankruptcy settlement plan for talc-related claims
• Attorneys claim J&J is misleading potential claimants to secure approvals
• Approval of the bankruptcy plan could reduce payments to legitimate ovarian cancer victims
• The proposed settlement would eliminate rights to jury trials for current and future victims
• J&J's bankruptcy attempts have been denied twice before for being filed in bad faith
• The company's strategy may delay resolution of cases and avoid trials

Insights

Legal Expert

The ongoing legal battles between Johnson & Johnson and the claimants reflect a complex and contentious area of mass tort litigation. Here, the issue centers around J&J’s attempts to use bankruptcy as a mechanism to limit liabilities or reduce the amounts to be paid to plaintiffs. Typically, bankruptcy can provide a company in financial distress a way to reorganize its debts. However, in this case, the prior rejections of J&J’s bankruptcy filings indicate the court's skepticism about the company's good faith in these filings. The attorneys' claim that J&J is including non-qualifying claims to secure favorable votes for the settlement plan adds another layer of ethical and legal complexity. If true, such actions could be seen as manipulation of the bankruptcy process, potentially leading to further legal scrutiny. Overall, the potential outcome of this case could set significant precedents for how large corporations manage mass tort claims and bankruptcy filings in the future.

Financial Analyst

From a financial perspective, the proposed $6.5 billion settlement is substantial but manageable for a company of J&J’s size, which has a market capitalization nearing $400 billion. However, if the bankruptcy plan is rejected again, J&J could face continued uncertainty and potentially higher payouts through ongoing litigation. This litigation risk can impact the company's stock performance, as investors typically react negatively to prolonged legal battles and associated uncertainties. Additionally, if the current or future settlements significantly exceed the proposed amount, it could have a more pronounced impact on J&J’s financial health and its investors. The market will be closely watching the developments in this case, especially leading up to the July 26, 2024, deadline.

Medical Research Analyst

The underlying issue involves serious claims about the health risks associated with J&J’s talc products. Multiple juries have previously awarded billions in compensatory and punitive damages to ovarian cancer claimants, which suggests a recognition of significant harm linked to these products. From a medical perspective, the distinction between legitimate ovarian cancer claims and other gynecological conditions is critical. The alleged misuse of non-cancer claims to influence the bankruptcy vote could undermine the trust in the settlement process and the perceived fairness of the compensation for affected individuals. For investors, the ongoing health and safety concerns related to J&J’s products could influence public perception and, consequently, the company’s market value.

Beasley Allen, Levin Papantonio, and coalition of law firms cite misleading efforts to secure approval

TRENTON, N.J.--(BUSINESS WIRE)-- Thousands of individuals who are being told they may be eligible for quick and significant compensation from a proposed $6.5 billion bankruptcy settlement offered by Johnson & Johnson (NYSE:JNJ) are being misled, according to other attorneys who represent ovarian cancer victims.

“We believe there is an ongoing effort to attract approvals for J&J’s third attempt at bankruptcy from those without a documented and diagnosed claim of ovarian cancer,” says Andy Birchfield of the Beasley Allen Law Firm.

“While individuals may have a gynecological illness or other medical condition, we don’t believe those votes should be used as part of a bankruptcy effort to coercively resolve ovarian cancer claims linked to Johnson & Johnson’s baby powder. Other claims may involve a serious condition, but we fear they are only being used to stuff the ballot box.”

Under a pre-packaged bankruptcy, 75% of the plaintiffs or creditors must approve the proposed plan before it can be filed. Two previous bankruptcy plans filed by J&J and its affiliates have been denied by the courts because they were filed in bad faith.

Birchfield and attorneys from more than 50 law firms opposing J&J’s voting scheme believe that the solicitation for “yes” votes is being used to create a false basis for a bankruptcy that could reduce payments to their clients, who have incurred individual losses and expenses of $500,000 or more in battling the disease.

“J&J is aware that the thousands of fantasy cases they are submitting to bankruptcy make it almost impossible for actual injured clients to recover,” says Mike Papantonio of Levin Papantonio.

Employing an at-times desperate strategy, J&J has attacked its former customers who have filed lawsuits, labeling them “nameless” and “faceless.” “This is a profoundly insulting statement to make about the very customers who trusted the company,” says Birchfield. “Thousands of women – mothers, sisters, daughters, aunts & cousins, whose lives have been upended by ovarian cancer linked to J&J’s talc products.”

Video: Victims Speak Out

Scores of women have described their pain in videos as they have battled ovarian cancer and opposed the bankruptcy plan on principle.

“These are real people who have suffered solely because of the deceit of Johnson & Johnson,” says Richard Golomb of Golomb Legal. “Under J&J’s plan, there is no basis to know how much a client would be paid or when, but it’s logical that accepting an extraordinarily large number of claims would reduce the benefit available to all.

“A few thousand dollars is not justifiable for an individual with a legitimate and longstanding medical diagnosis of ovarian cancer, but that’s what the math of this proposal demonstrates.”

The deadline for voting to approve or decline the bankruptcy proposal is 5 p.m. ET on July 26, 2024.

Attorneys opposing the J&J plan also note that approval would take away all rights to a jury trial for current and future ovarian cancer victims. Since 2016, juries have awarded collectively more than $5.4 billion in compensatory and punitive damages to ovarian cancer claimants. Although that total has been subsequently reduced by courts at the trial and appellate level, those reductions have not been based on the merits of the underlying cases.

“We welcome any individuals and their attorneys to file claims, with the required medical records and pathology reports, in the ongoing multidistrict litigation for ovarian cancer cases,” says Michelle Parfitt, co-lead counsel of the plaintiffs’ committee over more than 50,000 plaintiffs whose claims were previously consolidated in multidistrict litigation (MDL) in federal court. “The MDL, and civil courts in general, still provide the most fair and efficient means of trying and resolving these cases, with the first bellwether trial scheduled for December.”

“Those trials have been delayed solely due to J&J’s gamesmanship, desire to avoid trials, and repeated and unsuccessful attempts to claim bankruptcy for a company valued at nearly $400 billion, says Leigh O’Dell, co-lead counsel of the plaintiffs’ committee in the MDL litigation. “It’s a scheme with direct parallels to that attempted by Purdue Pharmaceuticals, which the U.S. Supreme Court recently overturned.”

View source version on businesswire.com: https://www.businesswire.com/news/home/20240722309512/en/

Mike Androvett

800-559-4534

mike@androvett.com

Source: Beasley Allen Law Firm

FAQ

What is the deadline for voting on Johnson & Johnson's (JNJ) bankruptcy proposal?

The deadline for voting to approve or decline Johnson & Johnson's bankruptcy proposal is 5 p.m. ET on July 26, 2024.

How much is Johnson & Johnson's (JNJ) proposed bankruptcy settlement for talc-related claims?

Johnson & Johnson is proposing a $6.5 billion bankruptcy settlement for talc-related claims.

Why are lawyers urging a NO vote on Johnson & Johnson's (JNJ) bankruptcy plan?

Lawyers are urging a NO vote because they believe J&J is misleading potential claimants and attempting to secure approvals from individuals without documented ovarian cancer diagnoses, which could reduce payments to legitimate victims.

How much have juries awarded to ovarian cancer claimants in Johnson & Johnson (JNJ) cases since 2016?

Since 2016, juries have awarded collectively more than $5.4 billion in compensatory and punitive damages to ovarian cancer claimants in Johnson & Johnson cases.