Mesothelioma victims, victims of asbestosis, and women diagnosed with ovarian cancer all gained a powerful legal ally this week when the U.S. Department of Justice joined them in arguing against Johnson & Johnson’s recent bankruptcy filing and reorganization.
Johnson & Johnson’s Bankruptcy Called Abuse of System by Mesothelioma Victims
Facing almost 40,000 individual lawsuits filed by victims of mesothelioma, ovarian cancer, and other asbestos-related diseases, Johnson & Johnson won approval of a bankruptcy filing that that would shelter it from those seeking compensation. While the company has denied that its talc powders are or have ever been contaminated with asbestos, juries across the United States have awarded multi-billion-dollar verdicts to plaintiffs, leading to the company’s use of a controversial bankruptcy procedure known as a “Texas Two-Step.”
Despite objections from those with outstanding claims, the company’s bankruptcy filing was approved, and now those plaintiffs have been joined by the U.S. Department of Justice (DOJ). Last week the DOJ’s Office of the U.S. Trustee has filed an amicus brief with the 3rd U.S. Circuit Court of Appeals, arguing that the bankruptcy should be dismissed and saying that the consumer giant was using the filing as “a weapon against tort claimants rather than a good-faith means of reorganization.”
Mesothelioma Victims Say Subsidiary was Formed Solely to Evade Responsibility
The mesothelioma and ovarian cancer plaintiffs filed opening briefs in the 3rd Circuit arguing that Johnson & Johnson having formed subsidiary LTL Management, transferred its asbestos liabilities to the company, and then having the company immediately file for bankruptcy, it represented a “sham.” The DOJ office agreed, pointing out that the company had filed for bankruptcy just two days after being formed and saying that it “was created for the sole purpose of filing for bankruptcy.”
If you or someone you love has been affected by asbestos-contaminated talc, the Patient Advocates at Mesothelioma.net can provide you with the resources you need to help you find justice. Contact us today at 1-800-692-8608.
