There are tens of thousands of mesothelioma and ovarian cancer victims who have filed claims against Johnson & Johnson, claiming that asbestos contaminating the talc in the iconic company’s baby powder was the cause of their illness. Faced with a rising number of multi-million-dollar verdicts, the company has repeatedly attempted a controversial strategy of filing for bankruptcy to protect itself from liability, and many thought that its most recent filing might succeed. But last week, the Department of Justice intervened in the case, filing a motion to dismiss the company’s bid to resolve its legal woes.
U.S. Trustee Calls J&J Bankruptcy Offer to Mesothelioma Victims “Bad Faith”
Following in the footsteps of many asbestos companies facing mesothelioma and ovarian cancer claims, Johnson & Johnson filed for bankruptcy as part of its attempt to settle the 60,000 outstanding claims against it. However, according to the U.S. Trustee, the company’s bankruptcy filing differs from standard asbestos trust funds because Johnson & Johnson “has no need for bankruptcy relief.”
Pointing to the Red River Talc LLC subsidiary that Johnson & Johnson established as part of its mesothelioma and ovarian cancer bankruptcy filing, the U.S. Trustee said, “There is no legitimate purpose in allowing (Red River) to remain in bankruptcy while it pursues a futile strategy, designed to benefit a non-debtor, J&J, that cannot lead to a confirmable plan of reorganization. The government representative said that the company’s third Chapter 11 filing is no different from the two previous versions that were struck down by the court due to the lack of financial distress of J&J’s named subsidiary.
As J&J Seeks Chapter 11 Protection, Mesothelioma Juries Award Multi-Million Dollar Verdicts
Johnson & Johnson has good reason to seek a way out of its asbestos liabilities: juries continue awarding significant damages to victims sickened by its contaminated talc products, with a Connecticut jury awarding $15 million to a man who blamed its baby powder for his illness earlier this month.
If you or someone you love has been diagnosed with malignant mesothelioma, the Patient Advocates at Mesothelioma.net are here to help. Contact us today at 1-800-692-8608 to learn more.
