Monday, February 14, 2022

DEEP POCKETS OF BIG PHARMA
J&J going to court in bid to resolve claims that talc products cause cancer

Johnson & Johnson has rejected claims that its baby powder and talc-related products
cause cancer, saying that they have been proven safe for decades and tests have
confirmed that they're free of asbestos. File Photo by Dan Peled/EPA

Feb. 14 (UPI) -- A subsidiary of Johnson & Johnson is scheduled to appear in New Jersey court on Monday over tens of thousands of lawsuits that say the company's famous baby powder and other talc-based products have been shown to cause cancer.

The company is seeking permission from a judge to settle almost 40,000 cases through the bankruptcy process

Johnson & Johnson hopes that by putting the personal injury claims into bankruptcy proceedings, it would drive settlements with the people involved in the lawsuits -- some of whom have had ovarian cancer and mesothelioma, which is related to asbestos exposure.

Attorneys for the plaintiffs, however, will ask the judge to refuse to allow Johnson & Johnson to settle via bankruptcy.

File Photo by Justin Lane/EPA-EFE

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"Specifically, this case was filed to shield J&J from liability for the production, marketing, and sale of carcinogenic products for decades," a committee representing some of the victims said in a court filing, according to Bloomberg.

The plaintiffs argue that if the judge permits Johnson & Johnson to proceed with its bankruptcy plan, it will limit the amount of money they can receive in damages.

A federal bankruptcy judge in New Jersey scheduled a five-day trial for this week to consider the committees' position that the company's bankruptcy case should be dismissed.

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Nearly two dozen plaintiffs won more than $2 billion last year after a jury concluded that Johnson & Johnson's talc powder caused their cancers. The U.S. Supreme Court later refused to hear an appeal from the company over the award.

Johnson & Johnson created a separate unit, LTL Management LLC, last year to include all of its talc-related liabilities. The unit then filed for bankruptcy in a legal maneuver that's sometimes called the "Texas two-step."

Johnson & Johnson has rejected claims that its baby powder and talc-related products cause cancer, saying that they have been proven safe for decades and tests have confirmed that they're free of asbestos.

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