It’s been years since Johnson & Johnson first responded to malignant mesothelioma and ovarian cancer claims by attempting a controversial bankruptcy strategy called the Texas Two Step. After multiple rejections of the company’s settlement plan, a Texas judge recently allowed a third filing and reorganization plan to be submitted in his court. But now that same judge has been asked by the company’s insurers to reject its new Chapter 11 plan disclosure statement as unconfirmable.
J&J’s Ovarian Cancer Settlement Would Saddle Insurers with Responsibility to Pay
According to the multiple insurance carriers responsible for liability coverage of mesothelioma and ovarian cancer claims against Johnson & Johnson, the Chapter 11 plan disclosure statement offered by Johnson & Johnson’s Red River Talc unit is fundamentally incomplete, affirmatively confusing, and misleading. Travelers, Chubb, and Ace insurance companies urged the court to reject the disclosure statement and order it revised.
The three companies would be responsible for primary general liability, product liability, and excess indemnity coverage for ovarian cancer and mesothelioma claims filed against the company because their policies offered overage between September 1957 and January 1986. The companies argue that they were excluded from all aspects of plan negotiations for the nearly $9 billion settlement that Red River proposed in its latest submission and assert that the company has been pursuing a “questionable solicitation process” for its settlement that includes support from illegitimate claimants.
Insurer’s Question Validity of Mesothelioma and Ovarian Cancer Claims Included in Settlement Votes
In their petition to the judge, the insurers say, “Insurers were never meaningfully informed of, or involved in, the discussions or negotiations leading to the announcement and solicitation of the plan, nor were they involved in any negotiations or provided any information about the billions of dollars in settlements with mesothelioma claimants that were publicly disclosed in connection with solicitation of the plan.”
They continue, noting that the creation of the plan is ”nothing more than a vote-buying scheme whereby J&J is agreeing to pay meritless claims in order to stuff the ballot box.”
If you or someone you love has been diagnosed with mesothelioma or ovarian cancer after using Johnson & Johnson’s Baby Powder, the Patient Advocates at Mesothelioma.net are here to help you get the information and compensation you deserve. Contact us today at 1-800-692-8608 to learn more.
