Court Denies J&J’s Second Attempt to Settle Talc Lawsuits

A US judge denied Johnson & Johnson's second bankruptcy attempt to resolve thousands of talc-related lawsuits. The ruling imperils a proposed $8.9 billion settlement that would stop new lawsuits from being filed.

In his ruling, US Bankruptcy Judge Michael Kaplan in Trenton, NJ, said 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.”

In response, J&J said it will appeal Kaplan's decision, and will vigorously defend itself against lawsuits that are “specious and lack scientific merit.”

In 2021, J&J tried to roll 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 US appeals court ruled that it was not in sufficient financial distress to be eligible for bankruptcy protection.

Following that ruling, LTL again filed for bankruptcy, 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. Despite the settlement attempts, J&J maintains its talc products are safe and do not contain asbestos.

Last year, J&J spun-off its consumer products business into a new entity, called Kenvue. The company had 2022 sales of $7 billion and is ranked No. 6 in The Top 50. 

See Also: