Johnson & Johnson is closer to unloading its talc-related liabilities onto a new subsidiary that could subsequently declare Chapter 11 bankruptcy and dramatically alter the thousands of lawsuits the company is facing.
A U.S. Bankruptcy Court judge in the District of Delaware declined requests last week from a panel of personal injury lawyers to prohibit Johnson & Johnson from exercising that option.
J&J is facing more than 34,000 lawsuits that link its talc-based products to cancer, the majority of which are ovarian cancer. A small fraction of those lawsuits involve malignant mesothelioma.
Most of the lawsuits contend that talc in the products was contaminated with toxic asbestos fibers.
By threatening to move its talc liabilities into a massive bankruptcy proceeding, J&J could better protect itself from pending jury trials, drive settlements and potentially save billions of dollars.
To this point, J&J has continued to litigate cases in court and to defend the safety of its products, citing numerous studies that have shown no evidence of contamination.
Recent J&J Case Worth $26.5 Million
Although Johnson & Johnson has been successful in some cases, it also has lost many high-profile lawsuits.
Earlier this month, a state superior court jury in Alameda County, California, awarded $26.5 million to a woman who said her mesothelioma cancer was caused by a lifetime use of Johnson’s Baby Powder.
Her attorneys cited scientific information detailing how...
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