Table of Contents
Judge Rejects Johnson & Johnson $10 Billion Bankruptcy Settlement
Third Bankruptcy Attempt Fails
A U.S. bankruptcy judge has rejected Johnson & Johnson’s $10 billion proposal to settle tens of thousands of lawsuits alleging that its talc-based products cause ovarian cancer. This marks the third time J&J’s bankruptcy strategy has been dismissed in court.
Court Ruling Against J&J
U.S. Bankruptcy Judge Christopher Lopez ruled that J&J does not belong in bankruptcy, stating that while the decision was difficult, it was ultimately the right one. The court found that J&J’s settlement did not have enough support from affected women and attempted to release legal claims against entities not involved in the bankruptcy process.
Legal Claims and Reactions
J&J stated that it would not appeal the ruling but also has no plans to settle, opting instead to litigate the claims in court. Plaintiffs’ attorney Andy Birchfield criticized J&J’s bankruptcy strategy as a bad-faith effort to avoid full accountability. With the ruling, lawsuits will proceed to trial, giving victims the opportunity to present their cases before a jury.
Flaws in Voting Process
The court found significant issues in the voting process used to approve the settlement. J&J claimed 83% support from plaintiffs, but Lopez ruled that at least half of those votes should not be counted. Some attorneys cast votes on behalf of clients without proper authorization, and the process was deemed rushed and flawed.
Opposition and Financial Considerations
Opponents of the bankruptcy strategy argued that J&J, a financially stable company, should not use bankruptcy to avoid lawsuits. The company faces over 60,000 claims alleging that its talc-based products contained asbestos and caused ovarian cancer. The rejected settlement would have prevented similar lawsuits in the future.
J&J’s Stance on Talc Safety
J&J maintains that its talc-based products are safe, do not contain asbestos, and do not cause cancer. The company stopped selling talc-based baby powder in the U.S. in 2020, switching to a cornstarch-based formula.
Impact on Future Cases
With the failure of its third bankruptcy attempt, J&J will now face individual lawsuits, potentially leading to substantial financial settlements or court-ordered damages. The legal battle continues as plaintiffs seek justice through the traditional court system.
“Judge Rejects Johnson & Johnson $10 Billion Bankruptcy Settlement” “Judge Rejects Johnson & Johnson $10 Billion Bankruptcy Settlement” “Judge Rejects Johnson & Johnson $10 Billion Bankruptcy Settlement”