Mesothelioma and ovarian cancer victims and their families seeking justice from Johnson & Johnson have initiated a new challenge against the company. Beyond their claims that the company’s talc caused their illnesses, the group is now accusing the company of purposefully and fraudulently initiating corporate transactions meant to block their ability to collect compensation.
Five Asbestos Victims Argue that Texas Two-Step Should Be Undone
The action taken by the asbestos victims argues that Johnson & Johnson’s bankruptcy filing and formation of LTL Management was specifically pursued to sidestep its mesothelioma and ovarian cancer liabilities. They are calling the corporate transfers that were completed as part of the process fraudulent and are seeking a declaratory judgment.
Those transfers began with the 2021 formation of LTL Management, then involved a transfer of corporate assets from an existing consumer health division into a new entity in 2022. There was then a replacement of a funding agreement worth $61.5 billion with a $29.9 billion agreement. The mesothelioma victims argue that those transfers were made to leverage the bankruptcy courts and delay trials and should be voided. They say that the company should be liable for the full $61.5 billion that was in the original funding agreement with LTL.
Mesothelioma Victims Seek Compensatory and Punitive Damages from J&J
As part of its filing, the group of mesothelioma and ovarian cancer victims accuse the company of malicious abuse and malicious use of process and are asking for both compensatory and punitive damages from Johnson & Johnson, as well as its subsidiaries and individual executives.
Speaking on behalf of the mesothelioma and ovarian cancer plaintiffs, a representative said, “It is time that J&J be held accountable for its tortured abuse of the bankruptcy process, and as much as the company seems to disdain the tort system, it is in fact the constitutionally appropriate forum for our complaint. We believe a jury will be very interested in all the company has done to sidestep its responsibility and further harm women and families who have already suffered tremendously.”
If you or someone you love has been affected by asbestos, the Patient Advocates at Mesothelioma.net are here to help. Contact us today at 1-800-692-8608.
