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Federal Court Accelerates Appeal of Johnson & Johnson Bankruptcy Plan to Limit Talcum Powder Liability

Riddle Brantley LLP   |  May 12, 2022   |  

Plaintiffs Will Appeal Approval of the “Texas Two-Step” Bankruptcy Filing Affecting Talcum Powder Lawsuits

A U.S. bankruptcy judge has granted and will accelerate an appeal by talcum powder lawsuit plaintiffs of Johnson & Johnson’s recently approved and controversial “Texas Two-Step” bankruptcy plan, which would shield the company from significant liability in talcum powder litigation. This is good news for thousands of plaintiffs, including those represented by Riddle & Brantley, who have alleged that asbestos-contaminated Johnson & Johnson talc-based baby powder and other personal hygiene products caused cancer, including ovarian cancer and mesothelioma.

Judge Michael Kaplan had previously ruled that Johnson & Johnson’s legal maneuver was not an abuse of the bankruptcy system, a claim that plaintiffs strongly dispute.

IMPORTANT: Our firm is actively investigating these claims and we strongly support this appeal of the recent bankruptcy ruling. If you’ve used Johnson & Johnson talcum powder and were later diagnosed with ovarian cancer, endometrial ovarian cancer, or mesothelioma, you may be entitled to compensation. Please call 1-800-525-7111 today for a free, no-obligation consultation. There are no attorney fees unless we win your case and you receive compensation.

How Will the Appeal Work?

Judge Kaplan’s order grants an expedited appeal before the 3rd U.S. Circuit Court of Appeals. In granting the expedited appeal, Judge Kaplan recognized that the consequences of the case will extend far beyond talcum powder litigation. “Clearly, this impacts decisions and potential restructurings beyond what’s being litigated in this court,” he wrote in his opinion.

What’s Controversial About the Talcum Powder Bankruptcy Case?

Johnson & Johnson used a controversial legal mechanism known as the “Texas Two-Step” to effectively transfer liabilities in the talcum powder litigation to a subsidiary, LTL Management LLC, which then promptly filed for bankruptcy. The bankruptcy, if allowed to proceed, would enable the company to avoid significant liability and effectively shut down future claims. The legal move has drawn national attention from victims’ advocates and congressional leaders, who have argued the move would set a dangerous precedent for future injury claims against powerful corporations. In his previous ruling, Judge Kaplan disagreed, saying that the bankruptcy would help resolve the claims more fairly and faster than otherwise litigating thousands of talcum powder cancer claims against Johnson & Johnson.

Senator Sheldon Whitehouse (D-RI) said that allowing the bankruptcy to move forward was “a blot on our legal system” that would allow companies to avoid accountability in the courtroom.

What’s Next in Talcum Powder Litigation?

Riddle & Brantley is actively monitoring this developing situation on behalf of our clients involved in talcum powder lawsuits against Johnson & Johnson. Please stay tuned to our website for the latest information concerning this appeal and efforts to hold Johnson & Johnson accountable for cancer cases potentially caused by asbestos contamination in talc-based baby powder.

Do You Have a Claim?

If you or a loved one have developed ovarian cancer or mesothelioma after using Johnson & Johnson talcum powder, please call 1-800-525-7111 for a free consultation. You may be entitled to compensation and the experienced talc attorneys at Riddle & Brantley would love to help however we can. Call us today and let’s see how we can help.

Justice Counts.