{"id":42365,"date":"2023-07-30T19:35:01","date_gmt":"2023-07-30T23:35:01","guid":{"rendered":"https:\/\/ifintechworld.com\/uncategorized\/jj-effort-to-resolve-talc-lawsuits-in-bankruptcy-fails-a-second-time\/"},"modified":"2023-07-30T19:35:03","modified_gmt":"2023-07-30T23:35:03","slug":"jj-effort-to-resolve-talc-lawsuits-in-bankruptcy-fails-a-second-time","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=42365","title":{"rendered":"J&J effort to resolve talc lawsuits in bankruptcy fails a second time"},"content":{"rendered":"
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\n<\/u>2\/2<\/span><\/p>\n

\u00a9 Reuters. FILE PHOTO: A bottle of Johnson and Johnson Baby Powder is seen in a photo illustration taken in New York, February 24, 2016. REUTERS\/Mike Segar\/Illustration\/File Photo<\/span>
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By Dietrich Knauth<\/p>\n

NEW YORK (Reuters) -A U.S. judge on Friday shot down Johnson & Johnson (NYSE:)’s second attempt to resolve tens of thousands of lawsuits over its talc products in bankruptcy, imperiling a proposed $8.9 billion settlement that would stop new lawsuits from being filed.<\/p>\n

U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey, ruled that a J&J company’s second bankruptcy, like its first, must be dismissed because the talc lawsuits did not put it in immediate “financial distress.” <\/p>\n

“In sum, this Court smells smoke, but does not see the fire,” Kaplan wrote, referring to the J&J unit LTL. “Therefore, the emphasis on certainty and immediacy of financial distress closes the door of chapter 11 to LTL at this juncture.”<\/p>\n

J&J said on Friday that it would appeal Kaplan’s decision, and said it would vigorously defend itself against lawsuits that are “specious and lack scientific merit.” <\/p>\n

J&J’s first bankruptcy gambit began in 2021, when it offloaded its talc liabilities into a new company, LTL Management, and immediately placed that company into bankruptcy. LTL’s first bankruptcy was dismissed in April after a U.S. appeals court ruled that it was not in sufficient financial distress to be eligible for bankruptcy protection.<\/p>\n

LTL quickly filed for bankruptcy again, arguing that its second effort has won more support from plaintiffs for a comprehensive settlement of current and future lawsuits alleging that J&J’s baby powder and other talc products sometimes contained asbestos and caused mesothelioma, ovarian cancer and other cancers. J&J has said its talc products are safe and do not contain asbestos.<\/p>\n

Attorneys representing cancer victims, along with the U.S. Justice Department’s bankruptcy watchdog, had called for LTL’s second bankruptcy to be dismissed as an abuse of U.S. bankruptcy law. <\/p>\n

Andy Birchfield, an attorney who represents cancer victims, said the second bankruptcy was meant to keep the talc lawsuits from being heard by juries.<\/p>\n

“J&J has spent two years trying to convince us that somehow a company worth a half-trillion dollars is bankrupt,” Birchfield said. “It’s time for the nonsense to stop and for J&J to accept responsibility.”<\/p>\n

J&J argued that the proposed bankruptcy settlement offers a fairer and faster resolution for cancer claimants than litigation in other courts. J&J compared recent trials to a “lottery” in which some litigants receive large awards and others get nothing. It said the costs of its talc-related verdicts, settlements and legal fees have reached about $4.5 billion.<\/p>\n

Plaintiffs’ lawyers who opposed the $8.9 billion offer said J&J had created the “illusion” of support by signing deals with plaintiffs’ lawyers who quickly signed up large numbers of clients without ever filing any lawsuits against J&J. <\/p>\n

By settling the lawsuits in bankruptcy, J&J could cram down the settlement terms on cancer victims opposed to the deal, and prevent new lawsuits from being filed by people who develop cancer in the future as a result of their talc use, according to lawyers opposed to the deal.<\/p>\n

LTL’s bankruptcy proceedings have largely paused the 38,000 lawsuits that were filed before October 2021. Kaplan allowed one case to proceed to trial during LTL’s second bankruptcy, resulting in an $18.8 million verdict in favor of a California man who said he developed cancer from exposure to J&J baby powder.<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

2\/2 \u00a9 Reuters. FILE PHOTO: A bottle of Johnson and Johnson Baby Powder is seen in a photo illustration taken in New York, February 24, 2016. REUTERS\/Mike Segar\/Illustration\/File Photo 2\/2 By Dietrich Knauth NEW YORK (Reuters) -A U.S. judge on Friday shot down Johnson & Johnson (NYSE:)’s second attempt to resolve tens of thousands of […]<\/p>\n","protected":false},"author":1,"featured_media":15330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[1],"tags":[83],"class_list":["post-42365","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-uncategorized","tag-featured","post_format-post-format-video"],"yoast_head":"\nJ&J effort to resolve talc lawsuits in bankruptcy fails a second time | iFintechWorld<\/title>\n<meta name=\"description\" content=\"2\/2 \u00a9 Reuters. 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