When Johnson & Johnson formed its subsidiary LTL Management, its sole purpose was to carry the company’s talc liabilities into Chapter 11 bankruptcy: the move put thousands of mesothelioma and ovarian cancer victims’ personal injury claims on hold. Those claimants got new hope when the Third Circuit rejected the controversial move, but now the company has refiled a new bankruptcy proposal, this time with an $8.9 billion settlement offer that they say has been approved by 60,000 talc injury victims.
LTL Management’s Original Filing Included $2 Billion for Mesothelioma and Ovarian Cancer Victims
Facing billions of dollars in mesothelioma and ovarian cancer liabilities from people exposed to its talc products, Johnson & Johnson formed LTL Management and then had the subsidiary file for bankruptcy in 2021 with an offer of $2 billion in settlement for claimants. Though a New Jersey bankruptcy judge approved the filing, the controversial move was appealed to the Third Circuit, which overturned the decision. The higher court noted the lack of good faith represented by filing for bankruptcy without any real financial distress.
Following the dismissal, those diagnosed with mesothelioma and ovarian cancer whose cases were put on hold had high hopes that they could resume their litigation, but only a few cases were allowed to proceed. According to a committee representing victims, roughly 2,700 individuals have died since the original multidistrict litigation against Johnson & Johnson was filed, with 600 of those having died since the formation and bankruptcy filing of LTL Management.
Renewed Bankruptcy Filing Quadruples Offer to Victims Group
The new bankruptcy filing includes an offer of $8.9 billion for those who blame the company’s talc for their mesothelioma and ovarian cancer diagnoses. Though this represents four times the amount that the company was originally offering – and approximately 60,000 claimants have agreed to the settlement that is being proposed – many victims say that the amount remains insufficient.
According to one representative of those diagnosed with mesothelioma and ovarian cancer, “Medical costs alone can range from $140,000 to more than $1.4 million per victim for ovarian cancer cases. The costs for mesothelioma are even higher.”
If you or someone you love has been diagnosed with an asbestos-related disease following exposure to a Johnson & Johnson’s talc product, the Patient Advocates at Mesothelioma.net can help. Contact us today at 1-800-692-8608.
