J&J Eyes Bankruptcy Maneuver to Bid to Skirt Liability in Baby Powder Lawsuits • Protecting Children’s Health


Johnson & Johnson is said to be considering using what legal experts call “Texas two-step” bankruptcy law, a maneuver that would allow the company to create a new entity talc housing staff to then file for bankruptcy to stop the court.

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Johnson & Johnson (J&J) is exploring a plan to offload liabilities from widespread child powder litigation by creating a new business that will then seek loss protection. Reported by Reuters.

In discussions about the settlement of the child’s child custody case, a J&J legal representative said the plaintiffs ’attorneys said the company could continue to put a subsidiary in bankruptcy as a methods to resolve thousands of claims involving ovarian cancer product.

If implemented, the plan will work result in short payments for cases that have not been resolved first, with the consent of people familiar with the matter.

Agreed to Wall Street Journal, Bankruptcy can be a powerful tool for companies facing a large number of lawsuits regarding alleged defective products, or other mass-tort claims. A chapter 11 filing could force claimants to accept minimum settlements by halting ongoing litigation and discovery processes, and by creating a centralized forum to provide value the claims.

Plaintiffs’ attorneys initially could not prevent J&J from taking such a step, even if they could. pursuit of legal channels to challenge it later.

A company spokesperson as on Sunday that “Johnson & Johnson Consumer Inc. has not decided on any specific step in its action other than to continue to protect the safety of talc and to litigate these cases in the tort system, as shown in pending trials. “

J&J is considering applying Texas’s “divisive merger” law, which could let the company to be divided into at least two entities-creating a new entity residing with talc liability to file for bankruptcy to stop the lawsuit. according to Reuters.

If J&J were to continue, unsettled plaintiffs would find themselves in the lengthy process of bankruptcy of a much smaller company. Future payments will depend on how J&J funds the entity that houses its talc liabilities.

The maneuver is known among legal experts as a two-tier loss in Texas, a strategy used in previous years by companies facing asbestos litigation.

Agreed to Under Law, LLC, “A Texas two -step bankruptcy is a move consistent with the unscrupulous tactics Johnson & Johnson have been using for decades. If they are successful – and we don’t believe they are the ones to hope for – to be expected the company to release their liability from talc lawsuits across the country. “

A 2018 Reuters investigation found that J&J has known for decades that asbestos, a known carcinogen, protects baby powder and other talc cosmetic products.

J&J stopped selling talc powder products in the U.S. and Canada last year. But as of April 2021, there were nearly 28,900 lawsuits in U.S. courts against the company and its subsidiary J&J Consumer Inc., which were accused of having powdered powders that caused ovarian cancer and other injuries.

J&J said in its most recent three-month report in April that the number of talc cases continues to grow.

As in The Defender reports last month, the Supreme Court on June 1 REJECTED an appeal to J&J to overturn a $ 2.1 billion judgment for plaintiffs claiming the talc powder company’s products gave them ovarian cancer.

The drug company, which makes Janssen COVID vaccine, asked the superior court to review the verdict, arguing that it had not received a fair trial in Missouri where the court awarded $ 4.7 billion in compensation to 22 women who got ovarian cancer.

The verdict is decreased up to $ 2.1 billion in June 2020, in the Missouri court of appeals.

Ken Starr, a prosecutor representing the women who sued J&J, wrote in court instructions that the pharma The company “has known for decades that their talc powders contain asbestos, a highly carcinogenic substance with unknown levels of exposure.”

Starr SAYS the company could protect customers by switching from talc to cornstarch as their scientists suggested in 1973, but they didn’t want to sacrifice revenue for a safe product. ”

J&J Its baby powder is said to be safe and does not contain asbestos or cause cancer.

The lawsuits linking talc powder to cancer are not the first time J&J has been sued about the safety of its products.

Others main lawsuits in J&J and remember for faulty products included:

  • 1995: J&J was hit with a $ 7.5 million fine for destruction of documents to cover up an investigation into the misappropriation of Retin-A acne cream to remove wrinkles.
  • 1996: The company enters an undisclosed settlement on false claims regarding the protection of condoms against HIV and other STDs.
  • 2001: J&J pays $ 860 million to a class action lawsuit for misleading customers about the timeless disposal of its 1-Day Acuvue soft contact lens. J&J recommends that they be worn only once, even if it is known that the lenses are no different than the usual Acuvue lens that lasts for two weeks.
  • 2010: The drug giant hits an $ 81 million settlement for wrong name the anti-epileptic drug Topamax to treat psychiatric illnesses and get outside doctors to join its marketing force to develop the drug for the unapproved condition. The following year, J&J paid $ 85 million for a similar charge against the drugstore Natrecor.
  • 2011: Many J&J baby products are discovered containing carcinogenic substances.
  • 2013: The United States Department of Justice gisuhan the company fined $ 2.2 billion for trafficking the autism and antipsychotic drug Risperdal for unapproved use. Forty-five states have filed civil lawsuits against J&J in the scandal. Other serious side effects from Risperdal reports the FDA is associated with diabetes mellitus, hyperprolactinaemia, somnolence, depression, anxiety, psychotic behavior, suicide and death.
  • 2019: A Philadelphia the jury ruled J&J will pay $ 8 billion in damages to punish a man in Maryland, whose lawyers argue the company illegally sold the antipsychotic drug, Risperdal, and minimized the impact that young men who use it could have ‘ g breast growth. At the time, J&J was facing about 13,400 claims tied to Risperdal.
  • 2020: Four companies, including J&J reached a $ 26 billion settlement in counties and cities that sued them for damages related to the opioid epidemic in the most federal court case in American history.

2021: J&J agreed to pay a $ 230 million settlement in New York state that banned the company from launching opioids and confirmed that it had already stopped supplying such products inside the U.S..





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