J&J Places Talc-Based Liabilities into Bankruptcy

J&J Places Talc-Based Liabilities into Bankruptcy
Calendar icon October 26, 2022 | Reading Time: 2 min

On Thursday Johnson & Johnson took action to place tens of thousands of legal claims into bankruptcy seeking to offload and limit liability for almost 38,000 women and their families. This marks a new stage in the legal battle in which thousands of ovarian cancer and mesothelioma sufferers have alleged that J&J’s baby powder and other talc-based products including Shower-to-Shower were contaminated with asbestos — a claim which the company denies.

In the “Texas two-step” process, Johnson & Johnson first created a new subsidiary company called LTL Management LLC which was saddled with all talcum powder liability.  LTL Management then filed for Chapter 11 bankruptcy protection in the U.S Bankruptcy Court in Charlotte, North Carolina. Neither Johnson & Johnson nor its subsidiaries, Aveeno or Neutrogena, were part of the bankruptcy filings.

Johnson & Johnson holds a market value of over $400 billion and hopes the prosecution of all talc cases against it will be halted while LTL with far limited value navigates through bankruptcy proceedings. Women with ovarian cancer and mesothelioma have been litigating against Johnson & Johnson in courts across the United States for many years; some cases even reaching the United States Supreme Court.  J&J has spent nearly $1 billion defending talcum powder cases and has generally resisted settlement of these cases.

This move has sparked outrage among lawmakers and consumer advocates across the country and has been declared as an “unconscionable abuse of the legal system.”  The move would allow J&J to safeguard its hundreds of billions of dollars and limit potential talcum powder injury recoveries only to the limited value of the new subsidiary company.

“We will be opposing J&J’s attempt to continue delaying compensation to the mothers, wives, and daughters whose trust in Johnson & Johnson’s reputation and claims of purity were misguided. Our battle along with our clients against corporate greed will be fought as hard as they have battled to survive this terrible disease,” says Brian A. Goldstein of Cellino Law.

If you or a loved one have been affected by J&J’s negligence, don’t hesitate to reach out to Cellino Law for help. Our attorneys have experience fighting against corporations like J&J on behalf of consumers. Our team is here to answer your questions 24/7, call us today for your free case evaluation.

INJURED?
WE CAN HELP

CALL US NOW

Free Case Review

BLOGS ARCHIVE

FREE CASE REVIEW

Testimonials

  • Thank you for your time, effort, and hard work on my case. I appreciate your expertise and compassion. I never experienced what I went through and I would have been completely lost without you.

    Martha

  • I really appreciated your determination and efforts on handling my case. You have done an outstanding job, and I am very satisfied with the outcome of the settlement. Thank you so so much John.

    Amparo

  • Now that reality has set in, I want to thank you for all your work and assistance in obtaining my settlement for the pelvic mesh. This money will make my life so much easier in the future. Medicare just isn't sufficient. I know that I will have enough to live on. I truly appreciate of your efforts. Thank you!

    Loraine

  • Cellino Law was a great company to work with. From the beginning they came out and met with my uncle and myself and assured us that everything would be taken care of from beginning to end our lawyer state and constant contact with us to make sure that everything would go smoothly and it did. I would definitely recommend anybody to go to Cellino Law for whatever help they need. And specifically please ask for the lawyer that we had Mr. Alan Silverstein. He was amazing and his staff was always attentive. Please go with them for your next law needs.

    Eshaunda

  • I want to thank your law firm for settling my lawsuit where others failed. You treated me with the utmost respect and care, because of your law firm the dream of owning my own home finally came true. For the first time in a long time, we're living out our dream home. Thank you a million times over. Thank you for making my dream come true.

    Marcy

  • This is to express our gratitude to you and your team in helping us and Stephanie navigate through the legal process following her car accident. We are very satisfied with the outcome and grateful for your hard work and attention to details. We fell confident that with this compensation, Stephanie will be able to move forward with her studies and her life with the ability to care for some of her health needs resulting from the injuries sustained following her car accident. Thank you very much and may God continue to bless your efforts.

    Jose & Rose