Johnson & Johnson Loses Third Bankruptcy Case Over Talcum Powder Lawsuits — What It Could Mean for Claimants

April 5, 2025 | By Riddle & Riddle Injury Lawyers
Johnson & Johnson Loses Third Bankruptcy Case Over Talcum Powder Lawsuits — What It Could Mean for Claimants

In a major legal development that could affect thousands of women and families across the country, Johnson & Johnson (J&J) has lost its third attempt to resolve talcum powder cancer lawsuits through the bankruptcy system. On March 31, 2025, U.S. Bankruptcy Judge Michael Kaplan formally rejected J&J's proposed $6.48 billion settlement plan, which aimed to resolve tens of thousands of claims alleging that the company's talc-based products caused ovarian cancer and mesothelioma.

This decision may reshape the course of talcum powder litigation and opens up new hope for individuals and families who are considering whether to file a claim. In short — this fight isn't over, and if you or a loved one has been affected, there may still be time to act.

If you or a loved one suffered from ovarian cancer or endometrioid ovarian cancer after using a qualifying Johnson & Johnson talc-based baby powder or other product, you may qualify for compensation. Please call 1-800-525-7111 for a free case review with an experienced talcum powder lawsuit attorney at Riddle & Riddle today.

Why Was Johnson & Johnson's Bankruptcy Plan Rejected?

For years, Johnson & Johnson has tried to funnel talcum powder lawsuits into bankruptcy court by creating a subsidiary called LTL Management, transferring all talc-related liabilities to it, and then having that subsidiary declare bankruptcy. This maneuver — often called the “Texas Two-Step” — has been criticized as a corporate loophole designed to limit payouts to victims by shielding the parent company from liability.

This most recent rejection marks the third time courts have ruled against J&J’s attempt to resolve the litigation through bankruptcy. Judge Kaplan found that LTL Management did not meet the standard of being in "financial distress," which is a key requirement for bankruptcy protection. Essentially, the court ruled that J&J, a profitable and financially stable corporation, cannot use bankruptcy to escape the legal claims of individuals who deserve their day in court.

In his decision, Judge Kaplan highlighted that the bankruptcy strategy would violate the plaintiffs' constitutional right to a jury trial and was not a valid use of the bankruptcy system.

Johnson & Johnson strongly denies any liability and/or wrongdoing in these cases. In a statement following the court ruling, the company called talcum powder claims “meritless.” 

What Does This Mean for Talcum Powder Victims?

This ruling is not just a procedural setback for J&J — it has real meaning for current and future claimants. The bankruptcy rejection sends a strong message: the courts are willing to hold J&J accountable and are not going to allow a powerful corporation to sidestep responsibility by manipulating bankruptcy laws.

If You Already Have a Pending Claim

If you or your loved one already has an active talcum powder claim, this ruling is good news. It means your case can continue in the civil court system, where you have the right to present your case to a jury. J&J will not be able to force your case into a bankruptcy settlement where payouts could be capped or delayed indefinitely. The ruling reaffirms that plaintiffs will have access to the full legal process, including the possibility of fair compensation through trial verdicts or negotiated settlements.

If You Have Not Filed Yet — There May Still Be Time

Importantly, this decision leaves the door wide open for people who have not yet filed a talcum powder lawsuit. Many potential claimants may have delayed filing, thinking it was too late or that the bankruptcy might block their claims. That is no longer the case.

While deadlines (called statutes of limitations) vary depending on the state and individual circumstances, this latest development means you may still have time to bring forward a claim — if you meet the criteria.

For a free case review, call 1-800-525-7111 or contact us via the website chat feature. The clock is ticking — don’t wait. The longer you wait, and if you qualify, the harder it may be to recover the compensation you deserve.

Do You Qualify to File a Talcum Powder Lawsuit?

If you are unsure whether you qualify, here are the basic eligibility requirements:

Talcum Powder Lawsuit Criteria:

  • You must have used Johnson & Johnson Baby Powder or Shower-to-Shower talcum powder for at least 4 years continuously in the general genital area.
  • You must have been diagnosed with ovarian cancer or endometrioid ovarian cancer.
  • Your cancer diagnosis must have occurred in 2009 or later.
  • You must have used talcum powder before menopause.

If you meet these criteria, you may still be eligible to file a claim and seek compensation. If you are unsure, we recommend contacting an experienced talcum powder attorney at Riddle & Riddle to review your case at no cost.

What Comes Next for Johnson & Johnson?

In a statement, Johnson & Johnson said that it did not plan to appeal, but would return to the civil legal process to litigate these claims.

Meanwhile, individual talcum powder lawsuits are expected to continue progressing in courts nationwide. Some will proceed to trial, and others may settle out of court. Either way, the bankruptcy door is closing, and J&J is being forced to face these claims head-on.

How Riddle & Riddle Can Help

At Riddle & Riddle, we have been standing with clients in product liability and dangerous product cases for decades. We are actively representing individuals harmed by Johnson & Johnson's talcum powder products in talcum powder and baby powder lawsuits and are prepared to help you determine if you qualify for a lawsuit.

Our firm has recovered over $850 million in compensation for our valued clients since 2000 alone (see disclaimer below), and we’re ready to help however we can. 

If you or a loved one developed ovarian cancer or endometrioid ovarian cancer after using talc-based powders, it is crucial to speak with an attorney to determine your options. Even though the bankruptcy strategy failed, you still need to act within legal time limits to protect your rights.

Call 1-800-525-7111 for a free case review. Our experienced talcum powder attorneys are standing by.

“This settlement changed me and my family’s lives.” —Linda B., Riddle & Riddle client

Free Case Evaluation — Contact Us Today

We offer free, no-obligation case evaluations to help you understand whether you qualify for compensation. We will walk you through your options and make sure you have the information you need to make the best decision for you and your family.

The window for filing may still be open, but it won’t stay open forever. Contact Riddle & Riddle today to get started. Call 1-800-525-7111 or send us a message via our website chat feature.

When Justice Counts™, count on the team at Riddle & Riddle Injury Lawyers.