Trial Over Fate of J&J Talc Settlement Likely Coming in Early 2025
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Johnson & Johnson’s attempt to settle its talcum powder lawsuits will likely face a key trial early next year. According to Law.com, the judge overseeing the bankruptcy case necessary to complete an $8 billion settlement plans to hold the trial in January or February to address several key issues.
Front and center will be questions raised by opponents of the settlement over whether the plaintiff support that J&J has advertised is accurate. The company had previously announced that 83% of affected plaintiffs back the offer.
According to Bloomberg, a lead attorney representing settlement holdouts has claimed that the vote to determine support for the settlement was rigged. J&J has denied these claims.
Red River Talc, a J&J subsidiary created to handle the company’s talc liabilities, filed for bankruptcy last month. The completion of that bankruptcy is needed to complete the multibillion settlement and resolve thousands of active lawsuits.
Trial Will Also Cover Motions to Dismiss Talc Bankruptcy Case
In addition to questions surrounding plaintiff support, Law.com reported that the upcoming trial will also focus on multiple motions that have been filed to dismiss Red River Talc’s bankruptcy case.
J&J is making use of a Texas two-step bankruptcy, where a subsidiary is formed to take on the company’s lawsuit liabilities before filing for Chapter 11 in its place. It’s a controversial strategy, and one that has drawn the ire of the U.S. Trustee Program, which is the Department of Justice’s bankruptcy watchdog.
“Taken as a whole, J&J’s tactics are a textbook example of bad faith,” U.S. Trustee Kevin Epstein said in a motion to dismiss the case. “The Debtor itself has no need for bankruptcy relief and it had no valid restructuring purpose when it filed its bankruptcy petition.”
The DOJ had previously pushed for the bankruptcy case to be moved to the New Jersey court where J&J’s past Texas two-steps were shot down, but Judge Christopher Lopez opted to allow the case to remain in Houston.
J&J will need to overcome the motions to dismiss in order for its settlement plan to remain on track.
Completion of Talc Settlement Would Resolve Thousands of Lawsuits
J&J is eager to complete its settlement and bring an end to yearslong litigation that has involved tens of thousands of lawsuits.
People who have filed these cases have blamed the use of the company’s talc-based baby powder for the development of ovarian cancer. As of this month, more than 58,000 active lawsuits were pending in multidistrict litigation.
J&J has continued to deny any wrongdoing, with the settlement billed by the company as a method to resolve the litigation in the interest of all parties.
“Based on the historical run rate, it would take decades to litigate the remaining cases,” J&J said in a statement when Red River Talc filed for bankruptcy. “Most claimants will never have ‘their day in court.’”
If approved, the settlement will resolve over 99% of talcum powder lawsuits connected to J&J. The remaining cases involve plaintiffs who claim that they developed mesothelioma after using the company’s products.
J&J discontinued its talc-based baby powder in the U.S. in 2020, not long after it recalled more than 30,000 bottles in 2019 because asbestos was found in a test sample.
Plaintiffs have been successful at times in state court when tying mesothelioma to J&J baby powder. In August, a South Carolina man was awarded $63.4 million after claiming his mesothelioma resulted from decadeslong use of J&J baby powder.