Will J&J File a Third Bankruptcy to Stop Mesothelioma Claims?
There have now been over 51,000 mesothelioma and ovarian cancer lawsuits filed against consumer giant Johnson & Johnson. While those claims were put on hold by the company’s bankruptcy filings, the courts have now rejected those claims twice and the cases have begun being heard again. Facing the very real possibility of more multi-million-dollar claims, the company is quietly settling with some victims out of court while at the same time mulling a third attempt at bankruptcy protection.
Talc in Johnson & Johnson’s Baby Powder Blamed for Mesothelioma and Ovarian Cancers
Johnson & Johnson’s Baby Powder had been one of the most trusted products in the world until long-time users began being diagnosed with malignant pleural mesothelioma and ovarian cancer. Scientists linked the diagnoses and deaths to asbestos-contaminated talc in the product, and internal company documents revealed that the company attempted to suppress a researcher’s report concerning cancer risks posed by the product.
As word spread among mesothelioma and ovarian cancer victims and their survivors, tens of thousands filed personal injury claims seeking compensation for the harm that they’ve suffered, and many of them resulted in multi-million-dollar jury awards. Facing the very real possibility of billions of dollars in liability, the company created a subsidiary called LTL Management to hold all of its asbestos liabilities, then attempted to place the subsidiary into bankruptcy. That controversial legal move put a temporary hold on litigation against the company, but with the bankruptcy filing being denied twice, the cases have started moving through the courts again, and the most recently heard case resulted in an $18.8 million award.
Johnson & Johnson Board Considering Third Bankruptcy Filing
As more mesothelioma claims begin to be heard, including one that is currently being held in Florida and others scheduled for March and August in New Jersey, the Johnson & Johnson board of directors is considering their options. Some board members favor settling with select victims while others are leaning toward filing another bankruptcy claim.
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