Bankruptcy can’t completely shield J&J from baby powder lawsuits

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Since 1886, Johnson & Johnson healthcare and pharmaceutical products have appeared in homes across the United States and around the world. From baby powder to sunscreen, J&J products meet a variety of consumer needs. But recently, the company has had to deal with an increasing number of baby powder chases. These lawsuits come from consumers who allege that J&J baby powder contains asbestos. The presence of asbestos, a known carcinogen, in baby powder may have contributed to the increasing number of cancer cases among those who used this product. The lawyers argued that J&J knew their products contained asbestos but continued to sell the product.

Bankruptcy maneuver suspends baby powder lawsuits

In 2009, the first lawsuit was filed against J&J, alleging that their baby powder caused cancer. Since then, nearly $3.5 billion has been awarded to plaintiffs through settlements and verdicts. Some of these verdicts and settlements have been overturned by appeals.

Most retailers in the United States and Canada pulled J&J baby powder from store shelves in 2019. J&J shared that the items were removed due to declining retail sales and lawsuit misinformation. company legal proceedings.

Recently, US Federal Judge Michael Kaplan ruled that the J&J Bankruptcy Plan, which saw the creation of LTL Management, was able to continue. In this plan, J&J split into two companies and transferred the baby powder lawsuits to LTL Management, which soon filed for Chapter 11 bankruptcy. This decision separated J&J’s assets from its liabilities. When LTL filed for bankruptcy, over 38,000 lawsuits were suspended until the bankruptcy plan was approved.

The plaintiffs were furious because J&J is one of the wealthiest companies in the country, valued at over $450 billion. It is believed that these maneuvers could save J&J billions of dollars. Filing for bankruptcy could be an effort to avoid overpayments and force plaintiffs to accept lower value settlements.

Bankruptcy cannot block industrial talc lawsuit

J&J is facing another lawsuit brought by the family of a man who worked at their Windsor Minerals mine, where the talc was mined. In 1986, this worker filed a lawsuit against J&J, alleging that his lung disease resulted from exposure to asbestos while working at the mine. The employee agreed to drop his lawsuit after J&J produced sworn testimony that no tests showed J&J’s talc contained asbestos. The worker’s family reopened the case, arguing that many lawsuits against J&J in recent years have been successful because there is evidence to support that talc contains asbestos, which leads to cancer, such as breast cancer. ovaries and lung. The family alleges that the evidence shows that the company withheld test results and provided false records.

While most of J&J’s baby powder lawsuits are currently on hold, the lawsuit filed by the worker’s family has been allowed to proceed as it alleges J&J hid evidence and differs from other baby powder lawsuits.

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