Court Rules Against Johnson & Johnson Bankruptcy Plan in Major Win for Talcum Powder Plaintiffs
Johnson & Johnson suffered a significant legal defeat in its efforts to avoid liability in talcum powder lawsuits this week, with the U.S. 3rd Circuit Court of Appeals ruling that the company cannot use bankruptcy proceedings to "offload" tens of thousands of claims. The baby powder manufacturer's attempted legal maneuver, known as the "Texas two-step," would have allowed Johnson & Johnson to avoid potentially billions of dollars in settlement costs.
Previously, a federal court had sided with Johnson & Johnson, and this week's decision by the appeals court is a sharp rebuke of the company's plan.
To be clear, this is a major victory for the nearly 40,000 plaintiffs who have alleged that asbestos contamination in Johnson & Johnson's talc-based products caused cancer. The ruling also has significant ramifications for future mass tort claims. Lindsey Simon, a professor at the University of Georgia School of Law, noted that the decision is "a push back on the notion that any company anywhere can use the same tactic to get rid of their mass tort liability."
"We are pleased by the Court's decision and thankful that Johnson & Johnson cannot use bankruptcy proceedings to avoid liability in talcum powder claims."-Gene Riddle, attorney, Riddle & Brantley Interestingly, 3M has attempted a similar "Texas two-step" bankruptcy maneuver to avoid liability in 3M earplugs lawsuits. While this ruling does not apply to that litigation specifically, it may play a factor in influencing other court decisions in the future.
Do You Have a Talcum Powder Cancer Claim?
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Baby Powder Cancer Lawsuit Criteria
You may qualify for compensation in a talcum powder lawsuit if you meet the following criteria:- Must have used Johnson & Johnson Baby Powder or Shower-to-Shower talcum powder for 4+ years continuously in the general area
- Must be diagnosed with ovarian cancer, mesothelioma, or endometrioid ovarian cancer
- Must have been diagnosed in 2009 or later
- Must have used talcum powder before menopause
"This settlement changed me and my family's lives."-Linda B., Riddle & Brantley client
*** Disclaimer: The results mentioned are intended to illustrate the type of cases handled by the firm. These results do not guarantee a similar outcome, and they should not be construed to constitute a promise or guarantee of a particular result in any particular case. Every case is different, and the outcome of any case depends upon a variety of factors unique to that case.