Johnson & Johnson’s Bankruptcy Plan for Talcum Powder Lawsuits Crushed by Appeals Court
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?
Our firm continues to investigate claims that Johnson & Johnson talc-based products caused ovarian cancer, endometrial ovarian cancer, and mesothelioma, and we are ready to help however we can. For a FREE case review, please call 1-800-525-7111 or complete the short form below.
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
Don’t wait — the longer you wait to request a free case review, the harder it may be to prove liability and secure the compensation you deserve. Call 1-800-525-7111 and let’s review your claim.
Justice Counts for victims of alleged asbestos contamination in Johnson & Johnson talc-based products. With this court ruling against the company’s bankruptcy plans, the opportunity to seek damages is alive and well. With more than $700 million recovered for injury victims since 2000 alone (see disclaimer below), we’d love to help however we can — call 1-800-525-7111 and let’s talk.
“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.