{"id":52043,"date":"2023-07-29T19:13:59","date_gmt":"2023-07-29T19:13:59","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/jj-effort-to-resolve-baby-powder-cancer-lawsuits-in-bankruptcy-fails-a-second-time"},"modified":"2023-07-29T20:33:18","modified_gmt":"2023-07-29T20:33:18","slug":"jj-effort-to-resolve-baby-powder-cancer-lawsuits-in-bankruptcy-fails-a-second-time","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/jj-effort-to-resolve-baby-powder-cancer-lawsuits-in-bankruptcy-fails-a-second-time","title":{"rendered":"J&J effort to resolve baby powder cancer lawsuits in bankruptcy fails a second time"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>A US judge on Friday shot down Johnson & Johnson’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.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 favour of a California man who said he developed cancer from exposure to J&J baby powder.<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. A US judge on Friday shot down Johnson & Johnson’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.U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey, ruled that a J&J company’s […]<\/p>\n","protected":false},"author":84,"featured_media":52042,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[274,315,4965,3689,1110,2931,275,4966],"class_list":["post-52043","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-south-africa","tag-baby-powder","tag-cancer","tag-jj","tag-johnson-johnson","tag-south-africa-2","tag-talc"],"yoast_head":"\nJ&J effort to resolve baby powder cancer lawsuits in bankruptcy fails a second time - South Africa<\/title>\n<meta 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