In the latest chapter on the legal battle between mesothelioma and ovarian cancer victims and consumer giant Johnson & Johnson, the last week of June saw attorneys presenting oral arguments to New Jersey bankruptcy court judge Michael Kaplan. Notably, this time around, representatives for the victims spoke in support of what the company was proposing.
Johnson & Johnson Proposes $8.9 Billion Settlement to Mesothelioma Victims
The ongoing litigation involves claims filed by over 60,000 mesothelioma and ovarian cancer victims who blame asbestos-contamination of Johnson & Johnson’s talc-based products for their illnesses. Following numerous losses in court, the company pursued a controversial legal maneuver known as a “Texas Two-Step.” They set up subsidiary company LTL Management as the sole entity responsible for their asbestos litigation, then immediately filed for bankruptcy protection for the subsidiary and offered victims a $2 billion trust to resolve current and future claims.
Objections from the mesothelioma and ovarian cancer plaintiffs resulted in the maneuver being rejected by the Third U.S. Circuit Court of Appeals, so the latest hearing represents a renewed effort by the company. This time they have proposed paying up to $8.9 billion net present value to the victims over a 25-year period, and firms representing the talc litigants have voiced support for the revision.
Not All Mesothelioma Victims Support Johnson & Johnson Settlement
Though plaintiffs’ representatives and Johnson & Johnson have asserted that the proposed deal is supported by mesothelioma and ovarian cancer victims, some have argued that the consensus that’s being intimated does not exist. They point to the lack of a single client speaking out in favor of the deal. In response, Judge Kaplan ordered attorneys to cease making statements regarding “majorities” or of the potential for retaliation for failing to support the proposal.
The week-long hearing included testimony from both the company and representatives of the asbestos victims. Judge Kaplan will issue his ruling on the proposed agreement in the next few weeks.
If you or someone you love has been diagnosed with malignant mesothelioma, the Patient Advocates at Mesothelioma.net can help. Contact us today at 1-800-692-8608.
