Over the last several years, Johnson & Johnson has been fending off personal injury lawsuits filed by mesothelioma and ovarian cancer victims who blame the company’s talc-based products for their illnesses. The company has attempted several controversial bankruptcy filings with increasing settlement offers for talc claimants, but each has been denied by courts and rejected by claimants. Yesterday, the latest trial began in a Texas courtroom, where a bankruptcy judge will hear the company urge a $10 billion Chapter 11 settlement.
Johnson & Johnson Cancer Victims Object to Asbestos Talc Plan
Johnson & Johnson created its subsidiary Red River Talc specifically to hold its asbestos liabilities, and the bankruptcy case pits Red River against ovarian cancer and mesothelioma victims who blame the company’s talc for their illnesses, and who object to the newest plan. While Red River’s attorney notes that the $10 billion resolution that the company is offering represents the “largest asbestos settlement in U.S. history,” a group representing many of the victims is questioning the methods the company used to reach an approval threshold from claimants of the latest plan.
The Coalition of Counsel for Justice for Talc Claimants is arguing against acceptance of the plan and is joined in its objections by the U.S. Trustee’s Office in asserting that vote solicitation rules were broken when Johnson & Johnson negotiated a deal with a law firm representing 1,500 claimants to switch their votes on the offer from no to yes. The objectors say that claimants were not consulted and that the power of attorney required by the rules had not been sought.
J&J Bankruptcy Opponents Say Company is “Busting the Process”
Both representatives of mesothelioma and ovarian cancer victims and the U.S. Trustee’s Office are arguing against the judge approving the bankruptcy plan, saying that a new plan vote is needed, with rules enforced by the court. They argue that the filing was made in bad faith since Red River has no employees or operations and that the significant settlement being made demonstrates that the parent company has the means to pay its asbestos liabilities.
Both also argued that too many third parties to the victims’ claims are being released within the plan. They also object to the proposed plan allowing the company to back out of the settlement after the court has confirmed it if 95% of claimants haven’t agreed to the releases within 120 days. Johnson & Johnson’s insurer has also objected to the plan, noting that the company has said that it will pay more to some claimants than would be expected to pay if claims went through the civil courts. The trial is expected to take two weeks.
If you or someone you love has been diagnosed with mesothelioma or another asbestos-related disease and you need legal guidance, call the Patient Advocates at Mesothelioma.net today at 1-800-692-8608.
