America’s courts are seeing thousands of mesothelioma and ovarian cancer lawsuits accusing consumer giant Johnson & Johnson of hiding contamination of its talc-based products. Even as multi-million dollar verdicts are being awarded to plaintiffs, five victims accused Johnson & Johnson of using fraudulent bankruptcy strategies to delay their litigation and put billions of dollars beyond their reach. This week, a federal judge dismissed that lawsuit.
Plaintiffs Say Bankruptcy Strategy Was Meant to Delay Justice for Ovarian Cancer and Mesothelioma Victims
U.S. District Judge Michael Shipp ruled Thursday that the cancer victims could not demonstrate they were harmed by bankruptcy delays that stopped mesothelioma and ovarian cancer cases from advancing between October 2021 and March 2025. The lawsuit alleged that Johnson & Johnson’s bankruptcy strategy was specifically designed to “hinder, delay, and defraud these women and prevent them from ever having their day in court” regarding claims that the company’s talc products contained asbestos and caused cancer.
Judge Shipp, who is overseeing more than 67,000 mesothelioma and talc lawsuits consolidated in multidistrict litigation, ruled that the plaintiffs’ “claimed injury is entirely hypothetical, as it is contingent on plaintiffs’ first prevailing in the talc litigation.” Shipp determined he could not accept that litigation delay itself constitutes injury, as that would be “fundamentally incompatible with the structure and purposes of the bankruptcy code,” which automatically halts lawsuits against debtors. Though this stay allows debtors to negotiate resolutions to their debt, the victims claimed that Johnson & Johnson’s multiple bankruptcy filings represented a scheme that stopped mesothelioma and ovarian cancer cases for nearly four years.
Mesothelioma and Ovarian Cancer Litigation Resumes After Bankruptcy Dismissals
In response to growing mesothelioma and talc litigation and potential liabilities, Johnson & Johnson used a corporate maneuver called the “Texas two-step” that placed its talc liabilities into a subsidiary company that then filed for bankruptcy. Courts rejected this mesothelioma liability strategy three times, most recently in March 2025, after a proposed $10 billion bankruptcy settlement collapsed when a judge found insufficient support from women alleging Johnson & Johnson products caused their cancers.
An attorney representing the victims said that they “disagree with the decision and will be reviewing it with our clients to discuss an appeal.” Since litigation resumed after the third bankruptcy dismissal, Johnson & Johnson has seen substantial losses, including a $1.5 billion judgment awarded to a mesothelioma victim in Baltimore. The company stopped selling talc-based baby powder in the United States in 2020 and globally in 2023, switching to cornstarch alternatives.
If you or someone you love has been diagnosed with mesothelioma or ovarian cancer, the Patient Advocates at Mesothelioma.net are here to help. Contact us today at 1-800-692-8608 to learn more.
