A subsidiary of Johnson & Johnson (J&J) requested to delay 38,000 lawsuits accusing their talc of causing cancer. Read to know more.
Johnson & Johnson seeks to delay lawsuits
On Tuesday, in a hearing in Trenton, New Jersey, LTL Management, a Johnson & Johnson subsidiary will argue for an “automatic stay” under the bankruptcy law. This is going to protect J&J which has not filed for bankruptcy. The law places an “automatic stay” on all legal action against a business while in proceedings. LTL’s first bankruptcy filing in 2021 placed them on hold. However, the 3rd US Circuit Court of Appeals in January ruled that it was not eligible since LTL was not in “financial distress”.
The plaintiffs are alleging J&J’s baby powder and other talc products are causing cancer. The firm offered an $8.9 million settlement. But, it has not provided details regarding how much each claimant will receive. However, LTL is arguing that litigation against the firm will imperil J&J’s efforts of negotiating a settlement of both current and future talc claims in its bankruptcy.
More on the litigation
As per a Reuters report, two cancer plaintiffs’ groups and the Department of Justice’s bankruptcy watchdog objected to the plea for a study. They are claiming it to be a deceptive attempt at bypassing the earlier court ruling. Additionally, they claim that another bankruptcy has “slim to nonexistent prospects” of success.
“Our decision dismisses the bankruptcy filing of a company created to file for bankruptcy. It restricts J&J’s ability to move thousands of claims out of trial courts and into bankruptcy court so they may be resolved, in J&J’s words, ‘equitably’ and ‘efficiently,” stated Judge Thomas Ambro previously. “We do not duck an apparent irony: that J&J’s triple-A-rated payment obligation for LTL’s liabilities. Which it views as a generous protection it was never required to provide to claimants, weakened LTL’s case to be in bankruptcy,” he added.
