J&J Places Talc-Based Liabilities into Bankruptcy

J&J Places Talc-Based Liabilities into Bankruptcy
Calendar icon October 26, 2022

On Thursday Johnson & Johnson took action to place tens of thousands of legal claims into bankruptcy seeking to offload and limit liability for almost 38,000 women and their families. This marks a new stage in the legal battle in which thousands of ovarian cancer and mesothelioma sufferers have alleged that J&J’s baby powder and other talc-based products including Shower-to-Shower were contaminated with asbestos — a claim which the company denies.

In the “Texas two-step” process, Johnson & Johnson first created a new subsidiary company called LTL Management LLC which was saddled with all talcum powder liability.  LTL Management then filed for Chapter 11 bankruptcy protection in the U.S Bankruptcy Court in Charlotte, North Carolina. Neither Johnson & Johnson nor its subsidiaries, Aveeno or Neutrogena, were part of the bankruptcy filings.

Johnson & Johnson holds a market value of over $400 billion and hopes the prosecution of all talc cases against it will be halted while LTL with far limited value navigates through bankruptcy proceedings. Women with ovarian cancer and mesothelioma have been litigating against Johnson & Johnson in courts across the United States for many years; some cases even reaching the United States Supreme Court.  J&J has spent nearly $1 billion defending talcum powder cases and has generally resisted settlement of these cases.

This move has sparked outrage among lawmakers and consumer advocates across the country and has been declared as an “unconscionable abuse of the legal system.”  The move would allow J&J to safeguard its hundreds of billions of dollars and limit potential talcum powder injury recoveries only to the limited value of the new subsidiary company.

“We will be opposing J&J’s attempt to continue delaying compensation to the mothers, wives, and daughters whose trust in Johnson & Johnson’s reputation and claims of purity were misguided. Our battle along with our clients against corporate greed will be fought as hard as they have battled to survive this terrible disease,” says Brian A. Goldstein of Cellino Law.

If you or a loved one have been affected by J&J’s negligence, don’t hesitate to reach out to Cellino Law for help. Our attorneys have experience fighting against corporations like J&J on behalf of consumers. Our team is here to answer your questions 24/7, call us today for your free case evaluation.



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