The tragedy of mesothelioma is that many cases are a result of decisions made by asbestos companies. Though they knew of the dangers posed by asbestos, they put profits over people’s wellbeing and allowed them to be exposed with no warning, then argue against being held responsible. In a modern-day version of the same story, Reuters has just revealed that Johnson & Johnson’s spent months strategizing about limiting payments to those sickened by exposure to their talc-based products.
“Project Plato” Created to Evade Mesothelioma Claims
According to a just released report, in the face of roughly 40,000 pending mesothelioma and ovarian cancer claims Johnson and Johnson crafted a top-secret plan they called Project Plato. It was specifically designed to shift its liabilities from personal injury claims into a bankruptcy proceeding through a controversial legal strategy known as a Texas Two-Step.
Months before Johnson & Johnson transferred its mesothelioma and ovarian cancer liabilities into a newly formed subsidiary and then filed for bankruptcy, it established a covert team to discuss the approach. Those involved were warned, “It is critical that any activities related to Project Plato, including the mere fact the project exists, be kept in strict confidence.” Team members were prohibited from even telling their spouses.
While Defending Against Mesothelioma Claims, Company Seeks Restraining Order Against Reuters
At the same time that Johnson & Johnson’s attorneys accused mesothelioma victims’ attorneys of sharing confidential documents with Reuters, the company sought a temporary restraining order against the publisher to keep them from reporting on their internal discussions, but hours later the company withdrew its request.
In a December deposition, a mesothelioma victims’ attorney questioned an executive from Johnson & Johnson’s newly formed subsidiary about the reasons behind the strategy. He was told, “The real reason we filed for bankruptcy” was that Johnson & Johnson’s consumer products division was in “financial distress” as a result of the “lottery-size” awards that were being directed to victims. Attorneys for victims call the process an abuse of the bankruptcy system, with one attorney remarking that the company’s maneuver had halted claims filed by people who were dying of cancer, and said, “It does not get more inhumane than that.”
If you or someone you love has been impacted by asbestos, the Patient Advocates at Mesothelioma.net are here to help you access the resources you need and the justice you deserve. Contact us today at 1-800-692-8608.
