Our lawyers are handling baby powder lawsuits in all 50 states. The talcum powder lawsuits against Johnson & Johnson have been ongoing for years. The lawsuits allege that prolonged use of talcum powder (or “talc”), the active ingredient in products such as Baby Powder and Shower to Shower, can cause ovarian cancer in some women.
This page provides a J&J talc power litigation update and discusses what the settlement amounts in these ovarian cancer lawsuits will be for victims.
Below are the latest talc powder lawsuit news updates and information on how to bring a claim in 2024.
Has the deadline passed for you to file a talcum powder lawsuit? Many who assume the statute of limitations has passed to sue Johnson & Johnson may be wrong. But as we write this in September 2024, this settlement is about to close out. We are still signing up new clients but this may not last much longer. Call us today at 800-553-8082 or get a free and quick case review online.
Latest News on J&J Talc Powder Lawsuit Update 2024
November 14, 2024: DOJ Pushback
November 1, 2024: MDL Adds 146 New Cases
The Talcum powder MDL added 146 new cases during the month of October. That brings the total number of pending cases in the Talc MDL up to 58,198.
October 29, 2024: January Hearing on Bankruptcy
In January 2025, a federal judge in Houston will decide whether to approve J&J’s plan, which aims to resolve these claims efficiently after prior failed bankruptcy attempts in New Jersey. Most plaintiffs are really frustrated at how long this is taking.
October 15, 2024: Connecticut Meso Verdict
Johnson & Johnson, along with several subsidiaries, was recently ordered to pay $15 million in damages in a mesothelioma lawsuit involving a real estate developer in Connecticut. The lawsuit held the company accountable for the plaintiff’s asbestos exposure, which led to the mesothelioma diagnosis.
October 12, 2024: Connecticut Mesothelioma Trial
The jury will deliberate in a Connecticut mesothelioma trial involving a Massachusetts real estate developer diagnosed with mesothelioma. His lawyers requested $30 million in damages from Johnson & Johnson; J&J suggested $4 million.
J&J’s defense denied liability, suggesting that his illness resulted from a genetic mutation rather than asbestos exposure. But J&J’s attorneys argued that if they were found responsible, the number should be more like $4 million. Let me tell you, a defense lawyer that offers a verdict amount in closing statements is a defense lawyer that does not expect to win.
October 11, 2024: MDL Adds 100 More Cases
The talcum powder class action MDL added another 115 new cases during the month of September. That pushes the total number of cases pending in this MDL up to 58,052.
October 9, 2024: J&J Bankruptcy to Stay in
A federal judge somehow in Texas somehow ruled that Johnson & Johnson (J&J) did not improperly manipulate bankruptcy laws by filing its insolvency case in Texas instead of its home state, New Jersey. This decision allows J&J to continue its efforts to settle thousands of lawsuits alleging its baby powder caused cancer. J&J has created a new separate bankruptcy subsidiary, Red River Talc, to take on the liability from these lawsuits and then filed for bankruptcy. It is the same old thing, the third time around.
September 30, 2024: U.S. Trustee Accuses J&J Of “Forum Shopping”
The U.S. Trustee is a government official who oversees bankruptcy cases to ensure they are conducted fairly and according to the law, acting as a watchdog against misuse of the bankruptcy system. The Trustee gets involved in any bankruptcy to ensure that the bankruptcy process is fair and transparent. They act as a watchdog to make sure that companies are not using bankruptcy just to escape legal liabilities or unfairly disadvantage creditors.
September 25, 2024: Texas Bankruptcy Judge Temporarily Halts Some Lawsuits Against J&J
A Texas bankruptcy judge has temporarily halted some talc lawsuits against Johnson & Johnson to address jurisdictional questions in the Chapter 11 case of its spinoff, Red River Talc LLC.
Red River was created to handle these claims, offering a $9 billion settlement plan to victims. The big issue is whether J&J will be allowed to do this in Texas.
September 23, 2024: J&J Announced Pre-Packaged Plan For $8 Billion Settlement Fund
This time, as a part of a “sort of” agreed upon settlement plant, Johnson & Johnson’s talc unit, Red River Talc LLC, has filed for Chapter 11 bankruptcy. This is the third time J&J has tried the bankruptcy route to resolve its talc-related liability claims.
The company announced a pre-packaged plan supposedly supported by 83% of current talc injury plaintiffs, proposing an $8 billion settlement fund to cover both current and future ovarian cancer claims. This plan would resolve 99.75% of existing claims, with remaining mesothelioma lawsuits being addressed separately.
September 20, 2024: Vacuum Of Information Surrounding Details Of Settlement Payouts
The last settlement rumors were $9.1 billion. Now, J&J is leaking the number $8.2 to the media.
Plaintiffs also need more information on how the payouts will work. There is just a vacuum of information on the details.
This litigation has been a circus on every level.
September 19, 2024: MDL Judge Rejects Request To Consolidate Two Cases For First Bellwether Trial
The MDL judge rejected plaintiffs’ lawyers’ request to consolidate two cases for the first bellwether trial.
The trial, scheduled for December 3, 2024, will now proceed with just one plaintiff.
The plaintiffs’ lawyers had argued, convincing I thought, that consolidating cases would expedite what has been a painfully long process. But Judge Shipp wants to stick with one plaintiff.
September 16, 2024: Oregon State Judge Overturns $260 Million Verdict Against J&J
A state judge in Oregon has overturned a $260 million jury verdict against Johnson & Johnson (J&J) in a case involving a woman who claimed she developed mesothelioma, a cancer linked to asbestos exposure, from using the company’s talc powder. The judge granted J&J’s request for a new trial, with a written explanation of the ruling to come. J&J argued that legal errors led to the original verdict, while the plaintiff’s legal team plans to appeal the decision.
September 12, 2024: New Talcum Powder Mesothelioma Trial Underway In Connecticut
A new talc meso trial has begun in Connecticut. A 64-year-old plaintiff diagnosed with mesothelioma sued J&J claiming the disease was caused by his lifetime use of J&J’s talcum powder products. The plaintiff says he used J&J baby powder during childhood to treat rashes and later as an athlete in college.
September 9, 2024: Total Settlement To Reach Over $9 Billion
J&J reportedly plans to pay an additional $1.1 billion to complete this deal. This would bring the total settlement to over $9 billion…paid out over 25 years.
September 3, 2024: 155 New Cases Over Past Month
The number of talc powder lawsuits stands at 57,937, which is an increase of 155 cases compared to last month’s total of 57,782. This represents a modest increase of approximately 0.27% in the number of lawsuits over the past month.
August 22, 2024: J&J Requests Judge Dismiss Proposed Class Action Aimed At Providing Medical Monitoring For Users Of Talc-Based Products
Johnson & Johnson has requested that a federal judge dismiss a proposed national class action aimed at providing medical monitoring for users of its talc-based products.
The medical monitoring compensation refers to the financial compensation sought to cover the cost of ongoing surveillance and health assessments for individuals who have been exposed to Johnson & Johnson’s talc products but may not yet have been diagnosed with a related illness. This type of damage claim is premised on the need for periodic medical evaluations to detect early signs of diseases, such as ovarian or gynecological cancers.
I have mixed feelings about these lawsuits. The actual compensation for individual plaintiffs is small and it takes the focus off victims who have suffered real injury from this product.
August 16, 2024: South Carolina Jury Awards $63 Million To Terminal Lung Cancer Patient
It is hard to imagine the thinking that lets these mesothelioma lawsuits go to trial. Why J&J does not make sure it settles them all is beyond me.
In another case in point, a South Carolina jury awarded over $63 million to Michael Perry, a cancer patient who developed terminal lung cancer, specifically mesothelioma, from inhaling asbestos in J&J’s talc-based baby powder. The verdict found both Johnson & Johnson and American International Industries (AII) negligent, attributing their products as the proximate cause of Perry’s condition.
While J&J was cleared of fraudulent misrepresentation, AII was found culpable. The jury determined their actions as “willful, wanton, or reckless,” awarding Perry economic and other damages exceeding $23 million, and his spouse, Lonnie Long, received over $9.6 million for loss of consortium. Additionally, punitive damages amounted to $30 million against J&J and $760,000 against AII, totaling $63.4 million owed to Perry and Long.
August 12, 2024: Early Rumors Suggest More Than 75% Of Claimants Voted In Favor Of Settlement Plan
At the end of July, the talc claimants voted to approve the latest settlement plan. Although the official results of that vote have not yet been released, the early rumors are that more than the required 75% of claimants voted in favor of the plan.
July 26, 2024: 3rd Circuit Upholds Dismissal Order Stating J&J Subsidiary Bankruptcy Was Not Made In Good Faith
The talc powder bankruptcy is as foolish as I have been telling you, the 3rd Circuit said yesterday. It upheld the dismissal order stating that LTL Management, a Johnson & Johnson subsidiary set up to take all of the talc liability, was not financially distressed, and thus, its bankruptcy filing was not made in good faith.
The court found that the potential for future insolvency does not justify a Chapter 11 filing.
J&J wants to appeal to the Supreme Court. Give me a break already.
July 25, 2024: Voting On Proposed Settlement Plan Ends Tomorrow Afternoon
Claimants must vote to accept or reject the settlement plan by 4:00 p.m. (Central Time) tomorrow. Information on voting is provided in a solicitation package sent to claimants or their attorneys.
The plan commits J&J and its make-believe companies to pay ovarian cancer claimants a present value of approximately $6.475 billion over 25 years, creating a multi-billion-dollar trust to compensate current and future talc claims related to ovarian cancer.
Because this whole thing is so convoluted if accepted by at least 75% of voters, the plan will lead to a bankruptcy filing under the case name “In re: Red River Talc LLC” in bankruptcy court. A hearing would be scheduled to confirm the plan, with further notifications issued if the court sets an objection deadline.
It will be interesting to see how the vote plays out. My assumption is that many plaintiffs’ lawyers changed gears over time and that more will recommend their clients take the settlement. But it remains to be seen.
July 9, 2024: New Study From WHO Finds Exposure To J&J Talcum Power Increases Risk Of Cancer
The house of cards J&J has built to argue its talc powder did not cause cancer is collapsing. Exposure to talc in Johnson’s Baby Powder is likely to increase the risk of cancer, particularly ovarian cancer, according to a recent assessment by the World Health Organization.
This litigation started with people dismissing the connection between talc and baby powder as the plaintiffs’ lawyers’ manufactured tale. It will end with it being a pretty much-accepted fact.
July 3, 2024: Claimants To Vote On Proposed $6.5 Billion Settlement To Resolve Talcum Power Lawsuits
A big decision is coming up on settlement in these lawsuits. J&J proposed a $6.5 billion settlement to resolve baby powder ovarian cancer lawsuits, contingent on a supermajority agreement (75%) from claimants at the end of this month. This is a big deal.
July 2, 2024: J&J’s Lawsuit Against Expert Witness Fails
J&J’s plan to gain an advantage in the talc litigation by filing frivolous lawsuits against the plaintiffs’ experts failed as expected yesterday. It lost its case against a prominent doctor, Jacqueline Moline, whom it accused of not disclosing alternative asbestos exposure evidence and making false statements regarding J&J’s baby powder.
This doomed-to-fail-but-sure-to-harass lawsuit centered around a 2019 article by Moline stating that 33 plaintiffs who used J&J talc products and developed mesothelioma had no other potential exposures to asbestos.
The New Jersey federal court judge ruled that Moline’s statements are protected by the First Amendment.
June 30, 2024: Court Expected To Allow J&J To Settle In Bankruptcy
Johnson & Johnson’s love affair with bankruptcy court continues, and it looks like the court will allow J&J to settle these claims in bankruptcy if the deal works out.
On Friday, the MDL judge denied the claimants’ motion – should say for some claimants, not others – for a temporary restraining order, stating that they failed to demonstrate actual harm that would justify an injunction.
The judge dismissed the argument that the settlement proposal would improperly limit the funds available to claimants, finding the claimants’ concerns about future harm speculative and insufficient for a preliminary injunction. He noted that the alleged harm depended on future events that might never happen.
So the stage is set for the settlement vote at the end of the month.
June 26, 2024: Expected Results Of Proposed Settlement Package
I’ve been going back and forth on my predictions on whether this talc powder settlement goes through. I’m certainly leaning towards thinking the settlement will be completed from talking to people over the last few weeks. It is by no means a done deal, however. There are still pockets of plaintiffs’ lawyers who are dead set against it and will have their clients vote that way next month.
June 13, 2024: Plaintiff’s Lawyers Split On Stance Towards J&J’s Settlement Offer
Where are we on the talc powder settlement? Plaintiffs’ lawyers are split on whether to recommend J&J’s settlement offer to their clients. In terms of which way the wind is blowing today, it is toward settlement.
June 10, 2024: J&J Reaches $700 Million Settlement With 43 States And DC
J&J reached a $700 million settlement with 43 states and the District of Columbia over the marketing of its talcum powder and agreed to stop marketing and manufacturing baby powder with talc. J&J is clearly looking to put talc powder-related litigation in its rearview mirror.
June 7, 2024: New Talcum Power Cancer Trail Underway In Texas
A new talcum powder cancer trial against J&J got underway this week in Dallas, Texas. Opening statements were presented on Wednesday, and the trial is expected to take two to three weeks to complete. This is the first talc trial we have seen in a while, and it is the first in Texas. [Update: this case settled.]
June 6, 2024: Talcum Power MDL Sees Significant Growth
There are now 57,365 pending cases in the J&J talcum powder MDL. That is 4,000 more pending cases than we had as of April 1st, so this class action MDL seems to be quietly heating up again in terms of new case volume.
June 4, 2024: Oregon Jury Orders $260 Million Verdict
Johnson & Johnson keeps letting asbestos lawsuit go to trial. It never works. The latest message to them was sent by an Oregon jury that ordered the company to pay $260 million to a woman who attributed her cancer to the lifelong use of the company’s baby powder. The jury found J&J liable for Kyung Lee’s mesothelioma and awarded her $200 million in compensatory damages along with $60 million in punitive damages. Lee, diagnosed with cancer last year at age 48, argued that the talc-based baby powder contained asbestos.
May 21, 2024: New Journal Of Clinical Oncology Research Favors Talcum Powder Plaintiffs
New research published in the Journal of Clinical Oncology supports over 50,000 lawsuits against Johnson & Johnson, claiming that its talc-based baby powder causes ovarian cancer. The study, conducted by researchers from the National Institutes of Health, found a significant association between genital application of talc powder and ovarian cancer, especially with frequent or long-term use.
These findings are a death knell to Johnson & Johnson’s defense that its talc products are safe and asbestos-free. It also has the potential to stop this talc powder settlement going through.
May 1, 2024: J&J Agrees To $6.5 Billion Global Settlement Through Subsidiary’s Bankruptcy
This morning, it was announced that J&J (through its talcum spinoff subsidiary) has agreed to a $6.5 billion global settlement deal to resolve the majority of the talcum powder ovarian cancer claims.
As part of the deal, the talcum plaintiffs will allow J&J’s subsidiary to file a third bankruptcy proceeding. The prior two bankruptcies faced strong opposition by the talc plaintiffs and were eventually dismissed. This settlement deal only covers the talcum powder claims involving ovarian cancer. J&J has already settled 95% of the talcum powder claims involving mesothelioma. Will the plaintiffs approve the deal? The vote is on July 26, 2024.
April 30, 2024: Plaintiffs’ Attorneys Contest MDL Judge’s Mandate For Full Refilling Of Daubert Motions
Plaintiffs’ attorneys representing clients in the talc powder litigation are contesting the MDL judge’s mandate for a full refiling of Daubert motions. They argue that this requirement, issued without an accompanying detailed opinion or legal rationale, is unwarranted and lacks support from legal precedent.
The lawyers assert that the justifications provided for this directive—recent amendments to Federal Rule of Evidence 702, emergent scientific insights, and the language used in a previous Daubert opinion by Chief Judge Wolfson—do not sufficiently substantiate the need for such a comprehensive procedural measure, especially since it was not solicited by any involved party nor was it subject to prior discussion. They correctly contend that changes to Rule 702 are unlikely to affect the ruling in this case. These prior decisions have stood unchallenged upon appeal, thereby affirming their appropriateness, and diminishing the justification for a total refiling.
What is the point of all this? Would this new judge really flip Judge Woflson’s ruling even though it would likely get overturned by the appeals court? I think putting some fear in plaintiffs’ lawyers – oh, no, would he really do this? – might be an intentional strategy to pressure plaintiffs into settling.
April 22, 2024: J&J Ordered To Pay $45 Million To Family Of Illinois Woman Who Died From Mesothelioma
Johnson & Johnson and its spinoff Kenvue Inc. were ordered to pay $45 million to the family of Theresa Garcia, an Illinois woman who died in 2020 from mesothelioma, a cancer linked to asbestos exposure. Jurors in Chicago found Kenvue 70% responsible for Garcia’s death, attributing the remaining 30% to J&J. The family alleged the companies knew their talcum-based baby powder was contaminated with asbestos. This case marks one of the first significant verdicts against J&J and its affiliates since a judge dismissed a bankruptcy filing by a J&J unit last year, intended to settle ongoing talc cases.
This is a great win and takes some of the pain out of the verdict in Florida last week.
April 18, 2024: Florida Jury Rules J&J Was Not Responsible For Ovarian Cancer Of Sarasota County Woman
Tough loss today. A Florida state court jury ruled that Johnson & Johnson’s baby powder talc product was not responsible for the ovarian cancer that led to the death of a Sarasota County woman. Her family’s lawsuit claimed that she used the powder daily from 1965 until her cancer diagnosis in 2016.
April 17, 2024: Verdict Expected In Florida Talcum Power Trial
The jury is out in the talc powder trial in Florida. The plaintiff’s lawyer told the jury yesterday that the roughly 41,000 times the plaintiff’s wife used talc powder made by J&J caused her death from ovarian cancer. At trial, the plaintiff’s experts testified that out of 40 subsequent studies, 38 supported this increased risk of ovarian cancer.
We expect a verdict this week, as early as today.
April 11, 2024: Talcum Powder Lawyer Testifies In Court
On Wednesday, a talc lawyer testified in court, defending himself against claims by Johnson & Johnson that he breached ethical duties by collaborating with a former company attorney to propose a $19 billion settlement over talcum powder litigation. He explained in his testimony that the ex-J&J lawyer did not influence their proposal strategy.
I’m a plaintiffs’ lawyer, I support other plaintiffs’ attorneys, and this is a lot about nothing. J&J is operating out of spite here as it often does. But I think we can all agree this is a bad look all the way around.
You can find more on this in the December 23, 2023 update below.
April 2, 2024: New Talcum Powder Lawsuit Underway In Florida
In Sarasota, Florida, a new talc powder lawsuit against Johnson & Johnson is underway. This is a wrongful death claim brought by the widower of a woman who used J&J’s baby powder for decades and later died from ovarian cancer.
This is the second post-bankruptcy ovarian cancer trial. The first case, as we detail in updates below, starting with the February 14th update, was declared due to a deadlocked Miami jury over the causal link between J&J’s baby powder and the death of an anesthesiologist.
April 1, 2024: 143 New Cases Added To Talcum Powder MDL
Over the last month, another 143 new cases were added to the talcum powder class action MDL. For other mass torts, that would be a high-volume month, but for the talc MDL, it is just a .003% increase. There are now 53,939 pending cases in the MDL.
March 27, 2024: MDL Judge Orders Complete Resubmission Of Daubert Motions
MDL Judge Michael A. Shipp has determined that updates to Federal Rule of Evidence 702, new scientific developments, and the considerations highlighted in Chief Judge Wolfson’s prior Daubert Opinion justify a complete re-submission of Daubert motions. As a result, parties are directed to file their Daubert motions by July 23, 2024, with any counterarguments to be submitted by August 22, 2024. The court will not, for reasons unclear, allow any reply submissions.
If Judge Shipp were to reverse the previous order from 2020 or Daubert, the chances of prevailing on appeal would be very high. But that would drag this litigation on even further.
It is hard to make sense of this ruling. This is hardly a case where the slight Rule 702 changes should change things one iota. Is this to pressure plaintiffs into a settlement? That is the only reason that comes to mind.
March 19, 2024: Plaintiff’s Lawyers Fight J&J’s Efforts To Quash Subpoena Served On PwC
Plaintiffs’ lawyers are fighting J&J’s efforts to quash a subpoena served on PricewaterhouseCoopers LLP (PwC). The subpoena seeks all communications related to Johnson & Johnson’s contingent liability for its talcum powder products, specifically concerning the process of removing said liability from its balance sheets. J&J challenged the subpoena’s relevance and argued that the requested communications are protected under the attorney-client privilege and work-product doctrine.
But plaintiffs argue these objections by asserting the relevance of the requested information, particularly in light of Johnson & Johnson’s public threats to file a third bankruptcy case to resolve its talcum powder lawsuits, which could bring ongoing litigation to a standstill. Victim’s talc attorneys argue that the information sought is crucial to understanding the defendants’ ability to resolve talc liabilities. It is similar to information previously sought by the defendants in related subpoenas.
March 6, 2024: Florida State Judge Declares Mistrial After Jurors’ Deadlock
A Florida state judge declared a mistrial after jurors couldn’t reach a verdict on whether Johnson & Johnson’s baby powder caused the cancer that killed a Miami anesthesiologist. The jury twice told the court they were deadlocked – “hopelessly deadlocked” after a day and a half of deliberations.
The deceased’s widower – a well-known Miami lawyer – argued that the baby powder caused his wife’s cancer. The plaintiff used the powder for decades before being diagnosed with cancer in 2016 and died in 2019. He asked for $14 million in damages.
March 1, 2024: Chief Medical Officer Of J&J Claims No Evidence Linking Talcum Powder To Ovarian Cancer
The Miami ovarian cancer talc powder trial is now in the defense case. (See the February 14 update below.) Dr. Edwin Kuffner, the Chief Medical Officer of Johnson & Johnson, told the jury that an extensive examination of scientific studies by his department revealed no evidence linking the use of baby powder to ovarian cancer.
He said J&J would not have issued a warning but would have immediately removed it from the market if any evidence of such a link had been discovered. Of course, J&J did pull talc powder off the market in 2020 for a “business reason.” The business reason was that many people disagreed with Dr. Kuffner.
February 16, 2024: Trial Judge Rules Old Advertisement For J&J Baby Power Are Relevant For Punitive Damages
Yesterday, the trial judge in the ongoing talc powder trial ruled that old advertisements for Johnson & Johnson baby powder are relevant for punitive damages.
This is hopefully a sign of good things to come in the trial.
February 14, 2024: New Talcum Powder Trial Unfolds In Miami
J&J surprised me by letting another case go to trial: In a new trial unfolding in Miami, a jury heard allegations that J&J has been aware for decades that its baby powder could potentially cause cancer. The lawsuit – filed by the surviving spouse, a Miami lawyer – aims to hold the company responsible for the 2019 death of an anesthesiologist who used talcum powder daily over 50 years.
February 10, 2024: New MDL Deadlines
New deadlines in the MDL:
Action | Deadline |
---|---|
Completion of Plaintiffs’ expert witness depositions | April 9, 2024 |
Defendants’ designation and report service of all experts | May 21, 2024 |
Completion of Defendants’ expert witness depositions | July 2, 2024 |
Filing of Dispositive motions, including Daubert motions | July 23, 2024 |
Filing of Oppositions to Dispositive/Daubert motions | August 22, 2024 |
Filing of Replies in support of Dispositive/Daubert motions | September 12, 2024 |
So we are looking at the end of the year at best for the subsequent talc powder trial in the MDL.
February 5, 2024: J&J Continues To Go After Experts And Lawyers
J&J continues to try to attack plaintiffs’ experts and lawyers. It will stop at nothing, and it will still fail.
The company is issuing new subpoenas to challenge the plaintiffs’ preparations. One subpoena targets Northwell Health Inc., seeking research participant names from Dr. Jacqueline Moline’s studies that link cosmetic talcum powder use to mesothelioma, despite her research focusing on a different type of cancer than the ovarian cancer claims in the litigation.
Johnson & Johnson has also subpoenaed KCIC, a products liability consultant, in a goofy effort to disqualify a plaintiffs’ attorney and his firm from leading the litigation.
February 2, 2024: 34 New Cases Added To Talcum Powder MDL
In January 2024, the talcum powder class action MDL saw the addition of 34 new cases, bringing the overall count of pending cases to 53,767. This marks the third consecutive month of low volume, following a surge of thousands of new cases in the initial two months after the bankruptcy stay was lifted.
January 23, 2024: J&J Offers $6.9 Billion Settlement
J&J has offered $6.9 billion to settle more than 50,000 ovarian cancer claims. So the average talc settlement under this proposal would be around $130,000.
Wait, wasn’t the offer just $8.9 billion? It was. But J&J is handling the mesothelioma cancer claims separately now.
Everyone knows J&J needs to pay more. The question is how much more they will pay and how long it will take for the talc powder lawsuits to settle.
January 11, 2024: J&J Agrees To $700 Million Settlement In Lawsuits Regarding Deceptive Marketing Tactics
Johnson & Johnson has agreed to a $700 million settlement in talc powder lawsuits from numerous U.S. states regarding the company’s deceptive marketing tactics.
The gist of the lawsuit was that Johnson & Johnson failed to reveal asbestos contamination in its talcum powder products – a factor increasing the risk of ovarian cancer and mesothelioma. This agreement, involving over 40 states, will settle all existing and potential state-level lawsuits accusing the company of hiding or not disclosing the cancer risks associated with its talcum powder products.
What does this news mean to you if you are one of the 50,000 talc powder victims who have filed a lawsuit? That’s a good question. Our lawyers think this is good news for you because it clears out distractions. We need everyone’s attention focused on reaching a global talc powder settlement in 2024. This helps.
January 3, 2024: J&J Investors File Class Action Against The Company
J&J investors have filed a class action lawsuit that echoes the personal injury and wrongful death plaintiffs in the talc baby powder class action lawsuit. A federal court judge in New Jersey has certified the class action.
What is the gist of this new class action? The lawsuit also contends that Johnson & Johnson made misleading statements regarding its product safety and research commitments. Specifically, the investors claim that while the company publicly touted the safety of its talc products, it was internally aware of concerns raised by an external laboratory about the inadequacy of testing methods for detecting asbestos in its products.
January 1, 2024: 5 New Cases Filed In Talcum Powder MDL
Not surprisingly, the last week of 2023 was a prolonged one for the talcum powder class action MDL docket. 5 new cases were filed directly in the MDL, and a suggestion of death was filed for one of the 50,000 plaintiffs with pending claims.
Latest News on J&J Talcum Powder Lawsuit in 2023
December 23, 2023: Update On J&J’s Allegations Of Lawyer’s Unethical Conduct
As we told you on Tuesday, J&J filed a motion that alleged that a plaintiffs’ talc powder law firm formed an inappropriate relationship with a former attorney who had worked with J&J, accusing them of using confidential information for their advantage. This former attorney, after leaving his previous firm, was alleged to have collaborated with the plaintiffs’ attorney in the talc litigation, which would be unethical.
The law firm responded yesterday, refuting claims of acquiring privileged information. They argued that J&J’s motion was an attempt to deflect from its own failures in addressing talc injury claims. Well, we all know there is ample evidence of this.
Is any of this important to you? Not really. We are just keeping you on a minor issue during a quiet time in the talc litigation after a number of settlements and the holidays on deck. Hopefully, as we head in 2024, our updates will be more about the path to a global talc powder settlement that finally compensates all victims.
December 19, 2023: J&J Seeks To Disqualify Plaintiff Attorney And Law Firm From Talcum Powder MDL
Johnson & Johnson (J&J) seeks to disqualify a plaintiffs’ attorney and their law firm from the talcum powder multidistrict litigation. J&J cites concerns over the attorney’s recent partnership with a former lawyer who previously worked on the opposite side of the talcum powder litigation. Together, they are involved in negotiating a $19 billion settlement for ovarian cancer cases related to J&J’s talcum powder products. J&J argues that this partnership poses a conflict of interest and potential exposure to confidential information. This dispute revolves around the resolution of numerous talcum powder cases.
December 8, 2023: Interesting Bloomberg Article Surrounding Attorney Who Proposed $19 Billion Settlement
Bloomberg has an interesting article about an attorney who has proposed a $19 billion settlement for all present and future talc powder lawsuits.
The lawyer’s plan is for his company would buy J&J units to deal with the talc cases and figure out how to divide up the settlement proceeds. The lawyer used to defend baby powder lawsuits for J&J, who is renouncing the plan. The conflicts of interest, the idea of a company getting paid to take on the sole responsibility for settlement… the whole thing is convoluted.
Still, the article is interesting for two reasons. First, $19 billion is a concrete number that would seemingly lead to a talc powder lawsuit settlement average of $200,000. You always pay attention when you see numbers and can roughly equate them to average settlement payouts.
The suggestion that a settlement that covers future payments is interesting. That is the problem for J&J, right? These claims will continue to go on even if there is a global settlement of the 50,000 claims against it. Estimating the number of future claims and their potential costs would be extremely difficult and potentially wildly unfair to future plaintiffs.
The question most victims have now is how long it will take for the talc powder lawsuit to settle. The real truth is that if plaintiffs want to hold out for $19 billion – and it is not an unreasonable position – it will take a lot more time, and it is unlikely that a deal will get done in 2024. The more likely scenario is a settlement in 2024 that is between $8.9 billion and $19 billion
December 5, 2023: J&J Seeks To Settle Lawsuits Regarding Asbestos Related Cancer
Johnson & Johnson is actively seeking to settle a number of lawsuits claiming that its talc-based Baby Powder is linked to cancer caused by asbestos. This move is intended to circumvent upcoming jury trials in 2024. These are tough cases of J&J, and the company now finally seems to accept that it needs to pay a lot of money to resolve these asbestos lawsuits.
This effort is aimed at avoiding jury trials scheduled for next year. There are a lot of trials scheduled. Of course, J&J is looking down the barrel of more than just asbestos claims. The company faces over 50,000 talc powder lawsuits, almost all alleging their ovarian cancer was caused by the use of baby powder. J&J still dreams of a third bankruptcy filing to comprehensively resolve the talc litigation. It will not work.
November 17, 2023: J&J Settles Two Talcum Powder Trials For Confidential Amounts
J&J has wisely decided to catch its breath and settle two talc trials heading for trial. The first case was settled in the middle of trial on Wednesday. A second case settled after a jury was picked. A third lawsuit scheduled in Seattle has been postponed to February 2024.
How much were these talc powder settlements? As you probably guessed, the settlement amounts are confidential.
November 7, 2023: J&J Seeks Third Attempt At Filing Chapter 11 Bankruptcy
J&J is making rumblings about a third attempt at filing for Chapter 11 bankruptcy for its LTL unit as a strategy to resolve lawsuits claiming its talc products cause cancer. Having failed twice in New Jersey courts due to the Third Circuit’s ruling that the LTL unit lacked immediate financial distress and could not file in good faith, J&J is contemplating filing in the Fifth Circuit’s Southern District of Texas because they think this forum might be more favorable.
Sneak preview of the outcome: it does not work, and J&J wastes even more money.
November 1, 2023: MDL Judge Seeks To Get Litigation Back On Track With New Scheduling Order
Forward progress in the talcum powder class action MDL has been stalled for nearly two years due to J&J’s two failed efforts to pull the litigation into bankruptcy. Now that this delay is finally over (for now at least), the MDL judge recently sought to get things back on track by issuing a new scheduling order for six cases previously selected for bellwether trials. The plaintiffs in these cases allege that they developed cancer from asbestos in the J&J talc product Shower-to-Shower.
October 18, 2023: J&J Considering Third Attempt To Use Bankruptcy To Settle
J&J is reportedly considering a third attempt to use bankruptcy as a means to settle lawsuits related to allegations that its talc-based baby powder contains cancer-causing substances.
This is probably a good sign the talc powder settlement talks are moving forward. J&J knows a third bankruptcy will fly as high as the last two. But the hassle is an arrow they can threaten to fire to create more work for everyone.
October 3, 2023: Appeals Court Nullifies $233 Million Jury Award
J&J got a win yesterday when an appeals court nullified a $223 million jury award to baby powder users who attributed their cancer to asbestos in the product. The court determined that improper scientific testimony had swayed the original decision. This case will get tried again, and the verdict may be even higher.
September 21, 2023: New MDL Judge Signals Need For Another Science Day
New MDL judge means another Science Day. What is a Science Day? The primary purpose of a Science Day is to provide the judge with a comprehensive understanding of the scientific, medical, and technical issues central to the litigation.
This is especially important in cases like the talc lawsuits, where the underlying facts and scientific evidence are complex and may significantly impact the outcome of the cases.
Both parties, plaintiffs and defendants, are usually allowed to make presentations. These presentations may include expert witnesses, scientific studies, research findings, and other evidence related to the case. The presentations aim to clarify complex scientific concepts and give the judge a balanced view of the scientific evidence.
Science Days are supposed to be non-adversarial in nature. The goal is to educate the judge rather than argue the case. Of course, lawyers are always trying to advance the interests of their clients. So it is subtle adversarial. This event is anticipated to take place in either November or December
September 18, 2023: Significant Spike In Talcum Powder Claims In MDL
As of this week, there are now 47,346 pending cases in the talcum powder class action MDL. Just 3 months ago there were only 37,542 pending talcum powder cases. The sudden spike in cases is likely attributable to the fact that automatic bankruptcy stay was finally lifted earlier this summer.
September 9, 2023: J&J Subsidiary Appeals Dismissal Of It’s Chapter 11 Bankruptcy Case
LTL Management LLC, a subsidiary of J&J, is appealing the dismissal of its Chapter 11 bankruptcy case, raising questions about the necessity of demonstrating financial distress to file for bankruptcy in good faith.
The court ruled that LTL was not in sufficient financial distress when it filed for bankruptcy due to backing from its parent company. The 3rd Circuit clearly does not agree with J&J. So this is a huge waste of time for everyone except the people who get paid by the hour to write appellate briefs.
September 1, 2023: J&J Continues To Delay Litigation
J&J has delay tactics down to an art form. The latest? J&J wants to reargue expert witness challenges that were already decided by the previous MDL judge, who has since retired. It is a silly argument and likely to go nowhere. But it costs everyone time.
August 14, 2023: New Jersey Bankruptcy Judge Dismisses J&J’s Subsidiary Bankruptcy Case
On Friday, U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey, officially dismissed Johnson & Johnson’s talc subsidiary’s second bankruptcy case.
But as our August 3rd update below foreshadowed, the judge did not accede to the request of plaintiffs’ talc powder lawyers for a six-month prohibition on future bankruptcy filings by the company.
So presumably, J&J can file for bankruptcy a third time, which is completely insane. But J&J may not even try at this point.
August 15, 2023: J&J Will Not Be Barred From Attempting Third Bankruptcy Filing
U.S. Bankruptcy Judge Michael Kaplan ruled this week that J&J and its talcum powder subsidiary, LTL Management, will not be barred from attempting a third bankruptcy filing. After the second LTL bankruptcy filing was rejected earlier this month, lawyers for the talcum plaintiffs asked the Judge to issue an order preventing J&J and LTL from filing any more bankruptcies for the next 6-months. That request was denied. J&J has not commented on whether it intends to file again.
August 4, 2023: Judge Dismisses Motion To Bar Attorney From Acting As Representative For Future Meso Claims
The New Jersey bankruptcy judge overseeing Johnson & Johnson’s Chapter 11 efforts to resolve talc claims dismissed a motion by a law firm to bar attorney Randi S. Ellis from acting as the representative for future mesothelioma claims, sharply stating that the request “lacks any legal or factual basis.”
August 3, 2023: Claimants Seek An Order Preventing J&J From Filing For Bankruptcy For Six Months
Could J&J really file a third bankruptcy? How about a fourth? How many times can they try? Baby powder claimants are seeking an order that J&J cannot file another bankruptcy for six months. Seems reasonable, right? Yet the judge that just dismissed the last case seemed reluctant to impose any restriction on future filings.
August 1, 2023: J&J Expected To Pivot Strategy
After its second bankruptcy application was dismissed, J&J is starting to realize bankruptcy is not a path and is assessing other legal options to address the thousands of cancer claims linked to its talc-based products. So what is the plan? Possible courses of action include settling individual claims, negotiating with law firms representing plaintiffs, or pursuing a global settlement. A global settlement would really be hard to pull off, and J&J knows there are likely law firms out there who are willing to take smaller settlement amounts to get this done now. Our lawyers think the most likely scenario is that J&J looks to settle cases with individual law firms. Cutting back on the number of claims would be a relief for J&J stockholders.
July 29, 2023: J&J’s Second Attempt At Chapter 11 Dismissed
Big news yesterday. Johnson & Johnson’s talc unit’s second attempt to address thousands of talc injury claims through Chapter 11 bankruptcy was dismissed by a New Jersey bankruptcy judge.
The judge ruled that the company did not meet the standards for financial distress required for the bankruptcy case to proceed. The first Chapter 11 filing of J&J’s subsidiary debtor, LTL Management LLC, was also dismissed on the same financial distress grounds in a January ruling by the Second Circuit.
This gives the plaintiffs more leverage in settlement negotiations. J&J just needs to put up more billions. It is as simple as that.
July 21, 2023: J&J Proposed Global Settlement Of $8.9 Billion
J&J recently proposed a global settlement of the talcum powder lawsuits for a total payout of $8.9 billion. That proposal currently has the support of a large segment of talc plaintiffs and their lawyers, pushing other plaintiffs to sign off also.
The $18.8 million awarded in the California talc trial earlier this week could undermine the push to win approval of the $8.9 settlement deal. Why? Because victims are more likely to seek just compensation – which our lawyers do not think this deal does – when they see a significant verdict. The verdict marks yet another big win for a talc plaintiff at trial, and it will likely reinforce the view held by many plaintiffs that $8.9 billion is a lowball offer for the resolution of nearly 38,000 claims.
July 19, 2023: California Jury Awards $18.8 Million In Damages
Earlier this week, a jury in California awarded $18.8 million in damages to a 24-year-old man who claimed that his long-time use of Johnson & Johnson’s Baby Powder caused him to develop a deadly mesothelioma cancer. This marks the verdict in a talcum powder case since J&J tried to spin its talc liabilities off into bankruptcy.
July 16, 2023: Law Firm Requests Disqualification Of Attorney From Representing Future Claimants
A law firm representing mesothelioma patients has requested the disqualification of attorney Randi S. Ellis from representing future claimants in the bankruptcy case of Johnson & Johnson’s talc liability unit. Ms. Ellis makes $1,015 an hour representing the interests of potential victims who have not yet brought a claim.
The request is based on allegations that Ellis was photographed having a meal – a stake dinner, apparently – with J&J’s chief negotiator and two ad hoc committee members supporting the bankruptcy plan. The law firm argues this raises concerns about impropriety and Ellis’ ability to fulfill her fiduciary duties.
July 11, 2023: Closing Statements Completed In California’s Baby Powder Lawsuit
Closing statements are completed in California’s baby powder asbestos lawsuit. The plaintiff’s attorney argues that J&J ignored medical data as early as 1998, when the plaintiff was born, showing a potential threat of asbestos in its talc products. They argue that J&J’s failure to act at that point led to Hernandez’s exposure and eventual illness. The plaintiff is seeking between $40 million and $50 million in compensatory damages plus another $450 million in punitive damages. Outlandish damages in many cases. Not this one.
July 10, 2023: J&J Subsidiary Lodged Lawsuit Against Three Doctors
LTL Management LLC, a bankrupt talc unit of Johnson & Johnson, has lodged a lawsuit against three doctors – plaintiff’s experts in talc lawsuits – claiming they hurt its business by publishing articles asserting a connection between talc use and mesothelioma, using what LTL refers to as “junk science.”
This follows a similar pattern of lawsuits by LTL in its initial bankruptcy proceedings, all dismissed following the dismissal of the bankruptcy itself. LTL was established to manage the influx of claims against J&J’s talc products, believed to contain asbestos and linked to diseases such as ovarian cancer and mesothelioma.
J&J is sending a message to plaintiffs’ experts everywhere it will sue if it does not like your scientific conclusions. The unfortunate thing is these doctors have to mount a legal defense, which means they lose even when they ultimately win. But the bigger problem is the chilling effect J&J seems to be looking for that tells doctors to tread lightly when taking positions big companies will not like. We all have an interest in as much science as possible coming to the marketplace of ideas.
July 1, 2023: New Jersey Bankruptcy Trial Comes To A Close
The bankruptcy trial in New Jersey is over. Soon, U.S. Bankruptcy Judge Michael Kaplan will decide whether to reject the bankruptcy filed by LTL Management. This subsidiary was established to resolve all talc powder lawsuits against J&J to keep these cases away from jurors who had already awarded billions of dollars.
June 29, 2023: California Mesothelioma Trial Continues
The mesothelioma trial concerning Johnson & Johnson’s baby powder continues in Oakland, California. The plaintiff has rested, and J&J lawyers are putting on their defense. Among those called to testify was Dr. Ed Kuffner, the company’s chief medical officer for consumer products, who shared insights regarding the recall of a sizable batch of powder allegedly contaminated with chrysotile asbestos. However, no tests were conducted on the 38,000 bottles involved in the recall. So Johnson & Johnson apparently feels free to cast doubt on the FDA’s initial findings. It seems pretty transparent. We should find out soon if the jury agrees.
June 28, 2023: J&J’s Talc Unit Goes To Trial On Motions To Dismiss Chapter 11 Case
Johnson & Johnson’s bankrupt talc unit recently went to trial on motions to dismiss its Chapter 11 case. During the trial, executives of the unit testified about the financial support provided by J&J.
The unit signed a new funding agreement with J&J because the first agreement was no longer enforceable. The new funding agreement provides financial support for an $8.9 billion settlement proposal. This is a little like asking the barber how often you should get a haircut. If we continue with jury trials, the real liability risk is more than double that settlement offer.
The trial is ongoing, and it is unclear whether the court will dismiss the case. It should. The 3rd Circuit was clear this is not a proper use of bankruptcy, no matter how J&J keeps repackaging it.
June 27, 2023: California Mesothelioma Plaintiff Provides Testimony On Consequences Of Cancer Diagnosis
In the ongoing Alameda County, California J&J baby powder mesothelioma trial, the plaintiff provided poignant testimony about the horrific consequences of his cancer diagnosis, which he attributes to his lifelong use of Johnson & Johnson’s (JNJ.N) baby powder. The 24-year-old emotionally conveyed to the jury of the unimaginable horror of being diagnosed with mesothelioma at such a young age. Regardless of where you stand on the case’s merits, what this man has endured is genuinely awful. His critical point is that if he had known the risks of using talc powder, he would not have used it.
Plaintiffs have established strong scientific evidence of the link between mesothelioma and talc powder. J&J will now have its chance to put on its case. This is a tough case for J&J and such a crucial juncture in this litigation. It is hard to understand why they have not made a reasonable settlement offer in this case given the implications on its $8.9 billion settlement offer.
June 14, 2023: New Jersey Bankruptcy Judge Postpones Key Decisions
A New Jersey bankruptcy judge postponed key decisions in Johnson & Johnson’s bankrupt talc subsidiary, LTL Management LLC’s Chapter 11 case. The judge awaits an upcoming trial before ruling on ending LTL’s exclusive right to propose a Chapter 11 plan. After their first case was dismissed, LTL refiled for Chapter 11, proposing an $8.9 billion settlement fund for cancer and mesothelioma claimants alleging asbestos exposure from talc products that we think is unlikely to get approval from enough victims. The hope is that Judge Kaplan follows the spirit of the 3rd Circuit’s opinion and dismisses the bankruptcy, which is exactly what just happened in the 3M MDL when 3M tried the same stunt.
June 2, 2023: Technical Glitches Interrupt Opening Statements In Asbestos Talc Trial
During the asbestos talc trial in California yesterday, some technical glitches interrupted the opening statement by the defense attorneys. The jurors, attending from home on Zoom, did hear Johnson & Johnson’s lawyer expressing skepticism about the 70s science asserting the presence of asbestos in their product before the opening was abruptly ended.
Meanwhile, the plaintiff was able to present their first witness, Arthur Langer. Langer explained that the occurrence of other minerals alongside talc is inevitable. He testified that his team informed J&J in 1971 about the presence of chrysotile asbestos in the company’s talc, albeit at less than 0.1 percent. He also discovered more asbestos in 1976.
June 1, 2023: New Mesothelioma Trial Underway
The first trial since J&J decided to spin off its talc division and declare bankruptcy marks a pivotal moment in the ongoing talc litigation saga. The trial began yesterday in the poignant case of a young 24-year-old plaintiff, diagnosed with a rare and aggressive form of mesothelioma last year, a diagnosis lawyers on both sides agree is a grave tragedy.
Opening statements laid bare stark differences in each side’s narrative. The plaintiff’s attorney took aim at Johnson & Johnson, alleging the use of deceptive tactics in research practices and throughout the litigation process. According to the attorney, the company tried to manipulate the definition of asbestos, despite internal documents from 1978 and 1994 showing that fibers discovered in the plaintiff’s tissue were included.
Johnson & Johnson’s precarious $8.9 billion settlement offer hangs in the balance with the progression of this trial. Despite the unique nature of this mesothelioma case and its distinct issues compared to most talcum powder lawsuits, a verdict favoring the plaintiff could inflict a serious setback to J&J’s hopes for broad acceptance of their proposed settlement among plaintiffs.
May 31, 2023: J&J Subsidiary Defends Second Chapter 11 Filing
Johnson & Johnson’s bankrupt talc unit vigorously defended its second Chapter 11 filing in the face of challenges from talc injury claimants. In an objection submitted to the New Jersey bankruptcy court, the subsidiary argued that the case was fundamentally different from the previous filing. It emphasized the unprecedented commitment of $8.9 billion from J&J, the largest settlement ever in a mass tort bankruptcy case. Not mentioned: how the size of the settlement means it is a fair settlement. J&J also claimed support from numerous plaintiffs’ law firms representing over 60,000 claimants. This is hard to verify but likely incorrect.
May 24, 2023: California Mesothelioma Trial Set To Start Jury Selection
Since Johnson & Johnson’s 2021 bankruptcy filing, the first trial concerning its cosmetic talc products allegedly containing asbestos is set to start jury selection on Monday in California in Alameda County Superior Court, a historically good jurisdiction for plaintiffs. The plaintiff claims that his mesothelioma was caused by asbestos exposure from J&J’s products, an allegation the company denies. The trial also involves six retailers accused of selling talc-containing products.
May 22, 2023: Future Claims Representative Appointment
Lawyers in the 2nd J&J talc bankruptcy are now battling over who should be appointed to the position of future claims representative, a role that is critically important to resolving the talc claims. Randi Ellis, a lawyer who frequently appears in MDLs across the country, was appointed as the claims representative in the first bankruptcy. J&J’s defense team wants Ellis to be appointed to that role again, but lawyers for the talc plaintiffs are objecting on the grounds that Ellis has a conflict of interest that should prevent her from assuming that position again. The conflict stems from the fact that Ellis was apparently involved in drafting the hotly contested second bankruptcy, which raises concerns about her ability to be neutral. The reality is this bankruptcy is likely to get dismissed anyway.
May 17, 2023: J&J Continues Efforts To Settle Through Bankruptcy
The pretend company that J&J made up for the talc litigation bankruptcy told a New Jersey bankruptcy court that they have designated $400 million to settle the claims made by states accusing the company of deceptive advertising for its talc products. So that makes it an $8.5 billion settlement for cancer victims. It is hard to imagine a scenario where J&J can push these baby powder settlements through at these numbers. While J&J’s proposed $8.5 billion offer sounds like a lot of money at first, it does not look great when you do the math. This settlement proposal – by our rough calculations – would not pay victims much more than an average settlement $100,000 per case. That is not enough.
May 15, 2023: J&J Faces Potential New Lawsuit From Cancer Victims Advocacy Group
J&J is potentially facing a lawsuit from an advocacy group representing cancer victims. The group contends that J&J intentionally withdrew a $61.5 billion funding agreement with its subsidiary, LTL Management LLC, to simulate financial distress and validate the unit’s Chapter 11 bankruptcy filing. The group asserts this action is equivalent to a fraudulent transfer of the victims’ compensation rights. They plan to explore J&J’s actions in the wake of the dismissal of LTL’s first bankruptcy case.
May 10, 2023: New Order Requiring Attempt At Settlement Mediation
Next week, the U.S. Bankruptcy Court in New Jersey will hear oral arguments on a motion to dismiss the second bankruptcy filing by J&J subsidiary LTL Management. In the meantime, however, the bankruptcy has issued an Order requiring both sides to take part in a new settlement mediation in the hope that a global settlement deal can brokered.
May 5, 2023: Talc Suppliers File For Bankruptcy
Talc supplier Whittaker, Clark & Daniels filed for Chapter 11 bankruptcy due to numerous lawsuits alleging its talc products caused cancer from asbestos exposure. Over 2,700 individuals have sued the company, and it was spending $1 million a month on legal defense. The company’s recent $29 million verdict in South Carolina forced it to seek bankruptcy protection, arguing for equitable distribution of assets among talc claimants instead of being seized by the receiver. Other talc suppliers have also filed for bankruptcy due to litigation.
May 4, 2023: Bankruptcy Judge Directs J&J To Restart Settlement Discussions
U.S. Bankruptcy Judge Michael Kaplan has directed Johnson & Johnson to restart settlement discussions with lawyers who turned down the company’s proposed $8.9 billion settlement offer. In Trenton, New Jersey yesterday, the parties appeared in court to discuss the next steps for the second bankruptcy case, and Judge Kaplan pushed more settlement talks.
This is the answer to resolve these claims for J&J. A baby powder settlement can get done. But it will require more money – more billions of dollars – from Johnson & Johnson.
Lawyers are split on whether to accept the proposal and not every client sees the issue the same way their attorney does. The second bankruptcy case is bound to go nowhere, and Judge Kaplan has scheduled a hearing in June to determine whether to dismiss the bankruptcy for the second time.
May 1, 2023: Relative Size Of $8.9 Billion Settlement
One question people keep asking is how could plaintiffs and their lawyers turn down $8.9 billion. Of course, that is a lot of money. But there are a lot of victims. And these are really good cases for plaintiffs. We were reminded of this recently with two talc trials resulting in big verdicts for the plaintiffs. In February, a talcum powder mesothelioma trial in Oregon resulted in a verdict of $18.1 million. A month later, another talc mesothelioma case went to trial in South Carolina and resulted in a verdict of $29 million for the plaintiff. The defendant in both cases was Whittaker, Clark & Daniels Inc., one of the leading suppliers of talc in the U.S.
April 30, 2023: J&J Increases Offer To $8.9 Billion
When J&J initially attempted to pull the talcum powder litigation into bankruptcy, it came with an offer to set aside $2 billion for settlements. The amount was absurdly low. None of the talc plaintiffs supported it. This time around, however, J&J has increased the offer to $8.9 if the talc plaintiffs will allow a bankruptcy settlement and they also have the support of a large segment of the talc plaintiffs and their lawyers. But 75% of the talc plaintiffs, which is required for bankruptcy plan approval, is a tough road with so many lawyers with large inventories of baby powder lawsuits opposed to the settlement.
What could solve the impasse? More billions.
April 25, 2023: Plaintiffs’ Lawyers And Victims Divided Over Settlement Offer
Talc cancer claimants have asked a judge to dismiss the Chapter 11 case filed by LTL Management LLC, a ridiculously made-up Johnson & Johnson subsidiary, saying the company is not financially distressed. LTL filed for Chapter 11 to settle tens of thousands of claims that J&J’s baby powders caused cancer. The 3rd Circuit dismissed its first Chapter 11 case in January, saying the company was not eligible for bankruptcy relief as it failed to show financial distress.
The claimants argue that LTL’s second Chapter 11 case is an abuse of the bankruptcy system and that it is being pursued in bad faith. J&J claims the bankruptcy settlement has “significant support” from firms representing an estimated 60,000 claimants. It is fair to say plaintiffs’ lawyers and victims are divided over the $8.9 billion settlement offer.
April 21, 2023: Judge Rules J&J Must Face New Lawsuits
A bankruptcy judge ruled that Johnson & Johnson must face new lawsuits alleging that the company sold tainted baby powder causing cancer. Although trials for talc lawsuits are paused for at least 60 days, new lawsuits can be filed, and lawyers can begin preparing their cases. The judge expressed skepticism over J&J’s ridiculous effort to revive its strategy with a second bankruptcy case.
April 13, 2023: Split Opinions On How To Respond To $8.9 Billion Offer
The big news is the $8.9 billion over 25 years settlement offer. Lawyers representing cancer victims in the MDL class action have vowed to fight the settlement with talc claimants. Why? They think it is not enough money for 70,000 victims who have cancer. These lawyers argue that J&J should negotiate a larger settlement or litigate individual claims if the latest bankruptcy is dismissed.
But there is another group of lawyers outside of the leadership in the class action. These lawyers have collectively amassed tens of thousands of cases. This group wants to settle now for what many argue is less than these victims deserve. Their argument seems to be twofold. First, they argue the settlement – about an average of $100,000 per plaintiff – is fair.
That is a hard argument to make. But their second argument has more teeth: victims can no longer wait and want their money now.
April 12, 2023: J&J Second Attempt At Bankruptcy Explained
People are asking how J&J can file for bankruptcy again. The answer is complex and convoluted. But let’s try to explain it simply.
Johnson & Johnson asserts that bankruptcy is the only means to address both present and future talc lawsuits conclusively. In other words, it thinks it will pay less if there is a bankruptcy component that applies pressure for a settlement. Driving past 400 years of American history, the company argues that bankruptcy benefits all parties by distributing settlement payments more equitably and efficiently than trial courts, where some litigants receive significant awards while others receive nothing.
The gist of the 3rd Circuit decision was this is not a case – a profitable company making a subsidiary to take the legal liability and declare bankruptcy – Congress contemplated when drafting the Bankruptcy Code. But it also said that the subsidiary was not in financial distress because J&J promised unlimited funding.
So J&J jumped on the unlimited funding part of the holding and did not promise to provide unlimited funding for litigation. The company claims that its revised financing arrangements with its subsidiary address the appeals court’s concerns while still supplying funds for claim payments. As if offering victims less money would solve the overarching problem.
Attorneys representing cancer victims who oppose the agreement counter this with what you conclude is countering legal nonsense with legal nonsense: J&J fraudulently transferred $50 billion in assets away from LTL Management to circumvent the appeals court’s previous ruling. Hyperbole was not spared: victims’ lawyers call it the largest “fraudulent transfer in United States history.”
Notwithstanding the legal mumbo jumbo, J&J does not really think this bankruptcy will survive. But it is a way of trying to push this $8.9 billion settlement and keep pressure on plaintiffs.
April 10, 2023: New Bloomberg Article Concerning New Law In New Jersey
Bloomberg has an interesting article on a new law in New Jersey that is shedding new light on litigation funding in the baby powder class action lawsuit. Litigation funders Virage Capital Management and TRGP Capital invested in hundreds of claims against Johnson & Johnson (J&J) over talc products in exchange for a portion of any winnings. J&J is now offering to pay $8.9 billion to settle all lawsuits.
The funders’ involvement is public information due to a New Jersey court rule requiring the disclosure of certain information about outside funding backers. The rule aims to address the growing calls for regulation of litigation funders. J&J faces over 60,000 claims when you add up state and federal baby powder lawsuits. Third-party funding in mass tort claims has pros and cons. But there is no question that we are seeing how third-party funding can level the playing field between individuals and large corporations in court.
April 4, 2023: Third Circuit Denies J&J’s Request To Continue Automatic Stay
It is enjoyable to see the worm turn in this litigation. J&J took another hit this week when the Third Circuit denied J&J’s request to continue the automatic stay while J&J appeals a bankruptcy ruling to the U.S. Supreme Court. The automatic stay has frozen thousands of talcum powder cases and prevented new lawsuits from getting filed ever since J&J initiated the controversial effort to spin the talc liabilities off into a bankrupt subsidiary over a year ago. When the 3rd Circuit ruled that this bankruptcy was not valid a few months ago, the stay was removed. J&J was hoping to have it continued pending the SCOTUS appeal. But the answer was no.
April 1, 2023: J&J To Appeal To The Supreme Court
Johnson & Johnson announced it will appeal its 3rd Circuit bankruptcy loss to the U.S. Supreme Court last week. Any chance the Supreme Court is even willing to hear the appeal? Not really.
February 25, 2023: Tennessee Congressman Urges Investigation Into Cost Of J&J Talc Products For U.S. Government
A congressman from Tennessee is now demanding that the U.S. Government Accountability Office (GAO) launch an investigation into how much J&J talc products have cost the government over the years.
In a recent letter to the GAO, Rep. Steven Cohen (D-Ten.) accused J&J of ignoring the dangers of its talc products for years while tax dollars were spent treating those injured by exposure to the products. The demand comes just weeks after J&J’s significant loss in the 3rd Circuit Court of Appeals.
J&J needs to start making reasonable settlement offers to victims to begin to put all of this behind it. It is a stain on one of the world’s greatest companies.
February 14, 2023: Bankruptcy Judge Announces Intention To Dismiss J&J Case
At a hearing today in New Jersey, U.S. Bankruptcy Judge Michael Kaplan announced his intention in light of the 3rd U.S. Circuit Court of Appeals ruling to dismiss the bankruptcy case.
February 8, 2023: New Judge In Talcum Powder MDL
In the latest MDL 2738 update, we report a new beginning in the talc powder litigation: a new judge. Following the retirement of Judge Freda L. Wolfson, who had presided over the baby powder litigation, the JPML Panel appointed U.S. District Judge Michael Shipp to preside over the second act of this litigation. It seems fitting to have a new judge as we restart the baby powder class action lawsuit. Judger Wolfson controlled the talc MDL for seven years.
January 31, 2023: Post Concerning 3rd Circuit Baby Powder Bankruptcy Ruling
Our post on the 3rd Circuit baby powder bankruptcy ruling.
January 30, 2023: Third Circuit Rejects J&J’s Attempt At Bankruptcy
The Third Circuit rejected J&J’s attempt to dump off its mounting talcum powder liability into bankruptcy. In an opinion issued today, the court dismissed the Chapter 11 bankruptcy filed by a subsidiary of J&J created to offload its growing talc liabilities. J&J’s stock dropped 3% on the news, the most significant single-day dip in over two years. J&J has already vowed to appeal the ruling to the U.S. Supreme Court.
January 2, 2023: Prediction Concerning 3rd Circuit Court’s Decision On J&J Bankruptcy
Less of an update than a prediction. The 3rd Circuit will reject J&J’s bankruptcy gambit in February. J&J will appeal to the Supreme Court but settle these lawsuits in massive numbers before the claims are resolved. (Arguably, this is more of a hope than a prediction. But we are excited about the possibility of progress in 2023 in this litigation after years of quicksand.)
December 25, 2022: 3rd Circuit Oral Arguments
Rewatching the 3rd Circuit oral arguments today. It is worth a watch. It is well-argued on both sides, and this is a strong panel of judges. You don’t get the impression that this panel of judges will allow this “bankruptcy to avoid bankruptcy” to stand. But that could be my bias talking.
December 22, 2022: Hair Relaxer Lawsuits In Regard To Ovarian Cancer
Hair relaxer lawsuits are being filed around the country by women who claim injuries from chemical hair straighteners. One injury that interests women in the talcum powder litigation is relaxer-induced ovarian cancer. There is good science to support these claims.
October 1, 2022: New Yorker Article
This New Yorker article on J&J is a great read.
September 27, 2022: Mediator Told To Report To Judge Before Weather Gets Cold
Also, the mediator hoping to facilitate a resolution to get settlement payouts to victims was told to report to the judge before “the weather gets cold.”
I was cold today.
September 20, 2022 Update: Judges’ Skeptical Litigation Advantage Is Not Motivating J&J
Yesterday, a 3-judge panel at the Third Circuit Court of Appeals in Philadelphia heard oral arguments in the appeal challenging the validity of J&J’s controversial effort to spin off its talcum powder liabilities into bankruptcy. J&J created a new corporate entity called LTL Management, transferred all the talc liabilities to it, and then LTL promptly filed bankruptcy.
The issue on appeal is whether this was permissible or whether the bankruptcy spin-off was filed in bad faith and should be dismissed. The panel of judges hit J&J’s attorney with many challenging questions.
One of those questions was whether the bankruptcy was for an advantage in the litigation. How could J&J lawyers pretend that was not the impetus for the bankruptcy filing? Somehow, they did, arguing that the advantage is a byproduct of a more overarching goal.
The judges seemed skeptical and raised many mass tort lawyers’ concerns that allowing this bankruptcy would spark a wave of similar bankruptcy filings (like the 3M earplug claims) by financially solvent companies looking to shed litigation liabilities.
The results of this ruling will have a tangible impact on talcum powder settlement amounts. If the bankruptcy holds, victims will still get settlement compensation payouts. But they are likely to be lower if the risk of colossal jury awards is not hanging over J&J’s head and they can resolve these claims in bankruptcy court.
Our baby powder lawyers are hoping the 3rd Circuit gets this right. The purpose of our bankruptcy laws for a company seeking insolvency – is to protect creditors. Instead, J&J is trying to use the Bankruptcy Code as a litigation management device for a company worth nearly $500 billion. That cannot be the purpose of bankruptcy.
When will J&J Settle the Remaining Talcum Powder Lawsuits?
Contact Miller & Zois to File a Talcum Powder Lawsuit
It is NOT too late to file your talcum powder lawsuit – at least not for many of you. If you used a talcum powder product for an extended period and were subsequently diagnosed with ovarian cancer, call our talcum powder lawsuit attorneys at 800-553-8082 or contact us online.