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.

INJURED?
WE CAN HELP

CALL US NOW

Free Case Review

BLOGS ARCHIVE

FREE CASE REVIEW

Testimonials

  • I want to thank your law firm for settling my lawsuit where others failed. You treated me with the utmost respect and care, because of your law firm the dream of owning my own home finally came true. For the first time in a long time, we're living out our dream home. Thank you a million times over. Thank you for making my dream come true.

    Marcy

  • Now that reality has set in, I want to thank you for all your work and assistance in obtaining my settlement for the pelvic mesh. This money will make my life so much easier in the future. Medicare just isn't sufficient. I know that I will have enough to live on. I truly appreciate of your efforts. Thank you!

    Loraine

  • Thank you for your help in settling the case of my father's accident. I could always count on you to answer my questions honestly and in terms I could understand. If all lawyers at Cellino Law are like you, I understand why they are an A-1 law firm.

    Bedner

  • I highly recommend Cellino Law to anyone involved in a car crash. I worked with Michael Lovecchio, and had a wonderful experience given the circumstances. He was very attentive, and got the best possible outcome I could have wanted.

    Susan

  • I really just wanted to say thank you so much for taking my case, answering all my questions, and mostly for being very patient with me. I feel that without you and Roza I would not have been able to get anything at all. I hope to never need a lawyer again, but if I do I will definitely want you both working for me. Again thank your for you hard work, time and patience.

    Veola

  • Thank you for your efforts on my behalf. I am very pleased (and surprised) at the amount of the settlement. We will use the funds to help pay down the debt on the truck we had to purchase after ours was totaled. Thank you again.

    Linda