Lawsuit Information Center
Our lawyers are handling baby powder lawsuits in all 50 states. The talcum powder lawsuits against Johnson & Johnson have been ongoing for years. The lawsuits allege that prolonged use of talcum powder (or “talc”), the active ingredient in products such as Baby Powder and Shower to Shower, can cause ovarian cancer in some women.
This page provides a J&J talc powder litigation update and discusses the settlement amounts in these ovarian cancer lawsuits for victims.
Below are the latest talc powder lawsuit news updates and information on bringing a claim in 2025.
Has the deadline passed for you to file a talcum powder lawsuit? Many who assume the statute of limitations has passed to sue Johnson & Johnson may be wrong. But as we write this in September 2024, this settlement is about to close out. We are still signing up new clients, but this may not last much longer. Call us today at 800-553-8082 or get a free and quick case review online.
Latest News on J&J Talc Powder Lawsuit Update 2025
Our legal team is committed to informing you about the ongoing developments in the Johnson & Johnson talc litigation, a case filled with enough high-stakes twists and turns to make for a good movie one day. Here, we provide the latest updates, ensuring you stay up to date on this legal battle in which many of you have a real stake:
April 11, 2025: Talcum Cases Back On After 3rd Bankruptcy Collapse
Following the collapse of Johnson & Johnson’s third failed bankruptcy attempt, federal talcum powder litigation is finally moving forward again with renewed energy. The bankruptcy court ruled that J&J’s proposed $9 billion settlement did not meet the legal standards required to protect the company from ongoing liability. Importantly, J&J has confirmed it will not appeal the ruling, clearing the way for litigation to resume in earnest.
The multidistrict litigation still includes more than 90,000 lawsuits from women and families who allege that J&J’s talc-based products—particularly Baby Powder and Shower-to-Shower—were contaminated with asbestos and caused ovarian cancer after prolonged use. While state court juries have already issued several blockbuster verdicts for plaintiffs, no federal MDL case has yet gone to trial—but that’s now expected to change unless we can get to a settlement.
Judge Shipp has asked both sides to submit a joint update on the status of pretrial motions and trial readiness, which they did on April 8. Many of the key issues delayed by the bankruptcy—including fully briefed Rule 702 challenges to expert witnesses—are now back in motion. Both sides agree that resolving these motions is a critical next step before the court can schedule the first bellwether trial, which will provide a crucial signal for possible settlement values.
With J&J’s controversial bankruptcy maneuvers behind it, the path is now clear for plaintiffs to get their day in court. The upcoming rulings on expert testimony and the first scheduled bellwether trials could dramatically shift the pressure back onto J&J to negotiate a real, court-approved global settlement that compensates victims fairly.
April 1, 2025: No Action in MDL
Only two new cases were added to the talcum powder MDL last month, pushing the total to 58,208. With 3M’s MDL ending, this is now the largest active consolidated mass tort.
March 31, 2025: 3rd Bankruptcy Effort Fails
We have been telling you how nonsensical J&J’s effort to use the bankruptcy process to reach a settlement in the talcum powder lawsuits. Today, U.S. Bankruptcy Judge Christopher Lopez agreed, dealing a crushing blow to Johnson & Johnson’s ongoing effort to resolve tens of thousands of talc-related cancer lawsuits through bankruptcy.
For now the third time, a federal court has rejected the company’s strategy of using a specially created subsidiary—in this case, Red River Talc LLC—to file Chapter 11 and channel liability into a settlement trust. Judge Lopez dismissed the case outright after finding that the pre-filing vote J&J orchestrated among 93,000 claimants was fundamentally flawed and rushed, stating that the company pushed “an unreasonably short voting time… to get to 75% at any cost.”
This ruling represents far more than a procedural setback. It is a sharp rebuke of what plaintiffs and critics have long described as a bad-faith abuse of the bankruptcy system by one of the wealthiest companies in the world. J&J has repeatedly attempted to invoke the protections of Chapter 11. This ruling hopefully puts to bed the idea that solvent mass tort defendants can manipulate bankruptcy rules to avoid the jury trial system.
From a strategic standpoint, J&J attempted to shift its legal battle to a more favorable jurisdiction. After earlier bankruptcy attempts were shut down by the Third Circuit (which held the company was not in sufficient financial distress), J&J moved its litigation to the Fifth Circuit, known to be more receptive to aggressive corporate bankruptcy strategies. However, even under this seemingly more hospitable jurisdiction, J&J could not find a judge to bless this process.
So what is the plan from here? J&J will appeal as always. But it is really a long shot. So for plaintiffs, for better or worse, this means litigation resumes in earnest. Victims who have waited years for resolution now move closer to their day in court, where they will have the opportunity to present evidence that J&J’s talc-based products were contaminated with asbestos and caused ovarian cancer and other diseases. The decision restores momentum to a decentralized, jury-driven process that J&J clearly hoped to bypass with a global trust mechanics—hopefully, this jump-starts settlement negotiations outside of the bankruptcy to finally give victims the long-overdue compensation.
March 5, 2024: MDL Count
The Talcum powder MDL remained at a standstill in February, with no new cases added. The total number of pending cases in the MDL remains at 58,206.
February 19, 2024: Bankruptcy Trial
The moment is here. This week, a critical trial began in Texas to determine the fate of Johnson & Johnson’s third talcum powder bankruptcy. The two-week proceeding, overseen by U.S. Bankruptcy Judge Christopher Lopez, will feature up to 40 witnesses and focus on allegations that the Chapter 11 filing was made in bad faith and that voting irregularities influenced the approval of a $10 billion settlement plan. The crazy part is that for all that effort, there is a good chance that Judge Lopez has long made up his mind. This is really a philosophical question: you are either for this nonsense or you are not.
Plaintiffs’ lawyers are of two minds on this. Some oppose the bankruptcy, arguing that client votes were improperly switched after additional compensation was negotiated. Others, citing years of litigation without client payouts as a reason to move forward with a settlement. Our position? Both sides have points, but the bankruptcy is utter nonsense.
February 4, 2024: MDL at Standstill
The talcum powder MDL has reached a standstill, with only one new case added in January, following just four new lawsuits in December. The total number of pending cases now stands at 58,206. The bankruptcy is putting a hold on things for now as we go into the big hearing in two weeks.
January 28, 2024: Settlement Holdouts
Some plaintiffs are pushing back against this settlement. They argue the $8 billion settlement plan unjustly denies victims their right to pursue claims in court and challenges the legitimacy of J&J’s claim that the settlement is (arguably) supported by over 80% of claimants.
Under the plan, J&J’s bankrupt subsidiary, Red River Talc, would establish a trust to compensate victims based on pre-set criteria, halting all related lawsuits. The holdouts, known as the Coalition of Counsel for Justice, criticize the proposal for lacking proof that funds are sufficient, not meeting bankruptcy standards for asbestos-related cases, and alleging flaws in the voting process. J&J contends that the settlement offers more compensation than trials could and accuses opponents of acting out of financial self-interest.
We will know more next month when all of this comes to a head.
January 24, 2024: Why Is J&J So Desperate to Do the Settlement Via Bankruptcy?
Why is Johnson & Johnson so obsessed with resolving the talc litigation through bankruptcy court if they are just settling the cases anyway?
The answer is rooted in a desire for control and predictability. Bankruptcy allows J&J to cap its financial liability, halting the flood of lawsuits and ensuring all current and future claims are handled through a single, centralized process. This streamlined approach eliminates the unpredictability of jury trials and opt-outs, where verdicts have ranged from modest awards to staggering punitive damages. By establishing a trust with pre-defined criteria for payouts, J&J creates uniformity in compensation while avoiding the risk of runaway verdicts that could escalate costs or set damaging legal precedents.
January 7, 2024: Strange Defense Verdict in Pittsburgh
A talc trial in Pittsburgh concluded with a defense verdict for Johnson & Johnson, but left a striking message from the jury that cannot be ignored. While the jury determined that the company’s talc products did not cause the plaintiff’s mesothelioma, it simultaneously awarded $22 million in punitive damages. What was the jury trying to do? Who knows? But this contradiction seemingly underscores a clear sentiment from the jury: they believed Johnson & Johnson’s actions warranted punishment, regardless of the ultimate causation finding.
The jury found Johnson & Johnson negligent and agreed that the company misrepresented the safety of its talc products. Although they did not link these actions to the plaintiff’s illness, the decision to award punitive damages speaks volumes about the jury’s perception of the company’s conduct. Despite instructions not to consider punitive damages without causation, the jury’s actions suggest a strong desire to hold Johnson & Johnson accountable.
December 29, 2023: Where Are We Going into 2024?
The next big thing in this litigation will be the bankruptcy hearing on February 18th. This hearing will determine whether the company’s proposed $10 billion bankruptcy plan can move forward and whether its Chapter 11 case will survive dismissal. For tens of thousands of cancer victims, the stakes couldn’t be higher.
At the center of the trial is J&J’s controversial use of the Texas two-step bankruptcy strategy. We all know this maneuver is designed to shield the company from full accountability while limiting victims’ recoveries. Some plaintiffs are fine with this. They want their money sooner rather than later. But other plaintiffs claim the plan unfairly prioritizes corporate interests over justice for those harmed by asbestos-contaminated talc products.
Adding to the complexity, the trial comes on the heels of the U.S. Supreme Court’s ruling in Purdue Pharma’s bankruptcy, which struck down similar third-party liability protections. This decision casts doubt on the legality of J&J’s plan, particularly as allegations of voting irregularities persist. Any ruling is likely to face appeals, potentially all the way to the Supreme Court.
For plaintiffs, this trial could mark a step toward justice—or yet another delay in their long fight.
December 5, 2023: Taking Down the Texas Two-Step
Senator Elizabeth Warren has reintroduced the Nondebtor Release Prohibition Act of 2024 to combat controversial bankruptcy strategies that allow wealthy individuals and corporations to sidestep liability. The legislation seeks to end nonconsensual litigation shields for nonbankrupt entities and codify the Supreme Court’s recent ruling in Harrington v. Purdue Pharma, which rejected liability releases for the Sackler family in Purdue’s bankruptcy.
Warren also targets the “Texas Two-Step” maneuver, a tactic used by companies like Johnson & Johnson to isolate liabilities in a subsidiary and place it into bankruptcy, shielding the parent company from lawsuits. The bill’s provisions aim to close loopholes that have allowed corporations to misuse the bankruptcy system to avoid accountability for widespread harm, such as public health crises and mass tort claims.
This legislation, while previously seen as a partisan effort by progressive Democrats, is increasingly attracting bipartisan interest. The Harrington v. Purdue Pharma decision and public outrage over corporate misuse of bankruptcy have galvanized lawmakers across party lines. Notably, a bipartisan group introduced the Ending Corporate Bankruptcy Abuse Act earlier this year to address similar issues. Republicans traditionally aligned with pro-business interests may now find common ground with Democrats on this issue, provided they can resist lobbying pressure from powerful corporate interests. As both parties face growing voter discontent over corporate accountability, this could become a rare opportunity for bipartisan reform.
The Nondebtor Release Prohibition Act of 2024—which could also fairly be called the Stop Johnson & Johnson’s Nonsense Act—would have a significant impact on Johnson & Johnson’s talc bankruptcy strategy, particularly its use of the Texas Two-Step maneuver. By invalidating bankruptcy filings from companies that engaged in divisional mergers to isolate liabilities within the past ten years, the bill would directly challenge J&J’s effort to separate its talc liabilities into a subsidiary and shield the parent company from lawsuits. Additionally, the legislation’s restriction on nonconsensual litigation shields and its requirement for explicit creditor consent would further weaken J&J’s ability to impose settlements on plaintiffs without their agreement. If this law had been in place, J&J’s controversial bankruptcy strategy would have never gotten off the ground.
December 3, 2023: Wait Until March
The bankruptcy judge has ruled that baby powder lawsuits against Johnson & Johnson will remain on hold until mid-March. The pause allows J&J to pursue its bankruptcy strategy aimed at permanently resolving tens of thousands of injury claims.
During a hearing yesterday, the judge declined to either broaden the litigation freeze to include other entities allegedly involved or lift the block to allow some cases to proceed. J&J is proposing to pay over $8 billion to settle the claims through a corporate entity it created to absorb the lawsuits and file for bankruptcy.
A trial is scheduled for late January to determine whether Judge Lopez will approve J&J’s bankruptcy plan.
November 14, 2023: DOJ Pushback
The Department of Justice, through its bankruptcy monitor, the U.S. Trustee, is objecting to Johnson & Johnson’s choice of Jones Day as counsel for its subsidiary, Red River Talc LLC, in its bankruptcy case.
The U.S. Trustee objected, citing a conflict of interest, as Jones Day previously devised the “Texas Two-Step” tactic allowing companies to create a subsidiary burdened with liabilities to file for bankruptcy, shielding parent assets from mass tort claims. It will be interesting to see if a Trump administration will provide similar oversight, given the potential shift in regulatory focus that might deprioritize aggressive intervention in corporate restructuring cases like this one.
October 29, 2023: January Hearing on Bankruptcy
In January 2024, a federal judge in Houston will decide whether to approve J&J’s plan, which aims to resolve these claims efficiently after prior failed bankruptcy attempts in New Jersey. Most plaintiffs are really frustrated at how long this is taking.
October 15, 2023: Connecticut Meso Verdict
Johnson & Johnson, along with several subsidiaries, was recently ordered to pay $15 million in damages in a mesothelioma lawsuit involving a real estate developer in Connecticut. The lawsuit held the company accountable for the plaintiff’s asbestos exposure, which led to the mesothelioma diagnosis.
October 12, 2023: Connecticut Mesothelioma Trial
The jury will deliberate in a Connecticut mesothelioma trial involving a Massachusetts real estate developer diagnosed with mesothelioma. His lawyers requested $30 million in damages from Johnson & Johnson; J&J suggested $4 million.
J&J’s defense denied liability, suggesting that his illness resulted from a genetic mutation rather than asbestos exposure. But J&J’s attorneys argued that if they were found responsible, the number should be more like $4 million. Let me tell you, a defense lawyer who offers a verdict amount in closing statements is a defense lawyer who does not expect to win.
October 9, 2023: J&J Bankruptcy to Stay in
A federal judge somehow in Texas somehow ruled that Johnson & Johnson (J&J) did not improperly manipulate bankruptcy laws by filing its insolvency case in Texas instead of its home state, New Jersey. This decision allows J&J to continue its efforts to settle thousands of lawsuits alleging its baby powder caused cancer. J&J has created a new separate bankruptcy subsidiary, Red River Talc, to take on the liability from these lawsuits and then filed for bankruptcy. It is the same old thing, the third time around.
The ruling is a significant victory for J&J. It wants to get this $8 billion or so settlement done that is said to be supported by around 83% of plaintiffs. This is a win for you if you, too, are a victim and just ready to get this over with.
September 30, 2023: U.S. Trustee Accuses J&J Of “Forum Shopping”
The U.S. Trustee is a government official who oversees bankruptcy cases to ensure they are conducted fairly and according to the law, acting as a watchdog against misuse of the bankruptcy system. The Trustee gets involved in any bankruptcy to ensure that the bankruptcy process is fair and transparent. They act as a watchdog to make sure that companies are not using bankruptcy just to escape legal liabilities or unfairly disadvantage creditors.
The U.S. Trustee for Johnson & Johnson’s third talc bankruptcy has put their thumbs on the scale of the bankruptcy debate. In a motion to transfer the case from the Southern District of Texas to New Jersey, the attorney for the U.S. Trustee accuses J&J of “forum shopping,” or choosing a favorable court, by filing the third bankruptcy in Texas through its subsidiary Red River Talc LLC. The Trustee argues that Red River is essentially the same company as the previous LTL Management, with the same liabilities and assets, and claims that J&J is trying to avoid the unfavorable rulings it received in New Jersey. The U.S. Trustee believes that the case should return to New Jersey to maintain the integrity of the bankruptcy system.
September 25, 2023: Texas Bankruptcy Judge Temporarily Halts Some Lawsuits Against J&J
A Texas bankruptcy judge has temporarily halted some talc lawsuits against Johnson & Johnson to address jurisdictional questions in the Chapter 11 case of its spinoff, Red River Talc LLC.
Red River was created to handle these claims, offering a $9 billion settlement plan to victims. The big issue is whether J&J will be allowed to do this in Texas.
September 23, 2023: J&J Announced Pre-Packaged Plan For $8 Billion Settlement Fund
This time, as a part of a “sort of” agreed-upon settlement plan, Johnson & Johnson’s talc unit, Red River Talc LLC, has filed for Chapter 11 bankruptcy. This is the third time J&J has tried the bankruptcy route to resolve its talc-related liability claims.
The company announced a pre-packaged plan supposedly supported by 83% of current talc injury plaintiffs, proposing an $8 billion settlement fund to cover both current and future ovarian cancer claims. This plan would resolve 99.75% of existing claims, with the remaining mesothelioma lawsuits being addressed separately.
September 20, 2023: Vacuum Of Information Surrounding Details Of Settlement Payouts
The last settlement rumors were $9.1 billion. Now, J&J is leaking the number $8.2 to the media.
Plaintiffs also need more information on how the payouts will work. There is just a vacuum of information on the details.
This litigation has been a circus on every level.
September 9, 2023: Total Settlement To Reach Over $9 Billion
J&J reportedly plans to pay an additional $1.1 billion to complete this deal. This would bring the total settlement to over $9 billion…paid out over 25 years.
August 22, 2023: J&J Requests Judge Dismiss Proposed Class Action Aimed At Providing Medical Monitoring For Users Of Talc-Based Products
Johnson & Johnson has requested that a federal judge dismiss a proposed national class action aimed at providing medical monitoring for users of its talc-based products.
The medical monitoring compensation refers to the financial compensation sought to cover the cost of ongoing surveillance and health assessments for individuals who have been exposed to Johnson & Johnson’s talc products but may not yet have been diagnosed with a related illness. This type of damage claim is premised on the need for periodic medical evaluations to detect early signs of diseases, such as ovarian or gynecological cancers.
I have mixed feelings about these lawsuits. The actual compensation for individual plaintiffs is small, and it takes the focus off victims who have suffered real injury from this product.
August 16, 2023: South Carolina Jury Awards $63 Million to Terminal Lung Cancer Patient
It is hard to imagine the thought process that allows these mesothelioma lawsuits to go to trial. Why J&J does not make sure it settles them all is beyond me.
In another case in point, a South Carolina jury awarded over $63 million to Michael Perry, a cancer patient who developed terminal lung cancer, specifically mesothelioma, from inhaling asbestos in J&J’s talc-based baby powder. The verdict found both Johnson & Johnson and American International Industries (AII) negligent, attributing their products as the proximate cause of Perry’s condition.
While J&J was cleared of fraudulent misrepresentation, AII was found culpable. The jury determined their actions as “willful, wanton, or reckless,” awarding Perry economic and other damages exceeding $23 million, and his spouse, Lonnie Long, received over $9.6 million for loss of consortium. Additionally, punitive damages amounted to $30 million against J&J and $760,000 against AII, totaling $63.4 million owed to Perry and Long.
August 12, 2023: Early Rumors Suggest More Than 75% Of Claimants Voted In Favor Of Settlement Plan
At the end of July, the talc claimants voted to approve the latest settlement plan. Although the official results of that vote have not yet been released, the early rumors are that more than the required 75% of claimants voted in favor of the plan.
July 26, 2023: 3rd Circuit Upholds Dismissal Order Stating J&J Subsidiary Bankruptcy Was Not Made In Good Faith
The talc powder bankruptcy is as foolish as I have been telling you, the 3rd Circuit said yesterday. It upheld the dismissal order stating that LTL Management, a Johnson & Johnson subsidiary set up to take all of the talc liability, was not financially distressed, and thus, its bankruptcy filing was not made in good faith.
The court found that the potential for future insolvency does not justify a Chapter 11 filing.
J&J wants to appeal to the Supreme Court. Give me a break already.
July 25, 2023: Voting On Proposed Settlement Plan Ends Tomorrow Afternoon
Claimants must vote to accept or reject the settlement plan by 4:00 p.m. (Central Time) tomorrow. Information on voting is provided in a solicitation package sent to claimants or their attorneys.
The plan commits J&J and its make-believe companies to pay ovarian cancer claimants a present value of approximately $6.475 billion over 25 years, creating a multi-billion-dollar trust to compensate current and future talc claims related to ovarian cancer.
Because this whole thing is so convoluted, if accepted by at least 75% of voters, the plan will lead to a bankruptcy filing under the case name “In re: Red River Talc LLC” in bankruptcy court. A hearing would be scheduled to confirm the plan, with further notifications issued if the court sets an objection deadline.
It will be interesting to see how the vote plays out. My assumption is that many plaintiffs’ lawyers changed gears over time and that more will recommend their clients take the settlement. But it remains to be seen.
July 9, 2023: New Study From WHO Finds Exposure To J&J Talcum Powder Increases Risk Of Cancer
The house of cards J&J has built to argue its talc powder did not cause cancer is collapsing. Exposure to talc in Johnson’s Baby Powder is likely to increase the risk of cancer, particularly ovarian cancer, according to a recent assessment by the World Health Organization.
This litigation started with people dismissing the connection between talc and baby powder as the plaintiffs’ lawyers’ manufactured tale. It will end with it being a pretty much-accepted fact.
July 3, 2023: Claimants to Vote on Proposed $6.5 Billion Settlement to Resolve Talcum Powder Lawsuits
A big decision is coming up on settlement in these lawsuits. J&J proposed a $6.5 billion settlement to resolve baby powder ovarian cancer lawsuits, contingent on a supermajority agreement (75%) from claimants at the end of this month. This is a big deal.
Media coverage has been more focused on J&J’s legal dispute with a firm involved in long-standing talcum powder mass tort litigation. J&J wants to disqualify the firm from the litigation, alleging many ethical violations they seem to be bringing out of pure spite, just like the failed lawsuit it brought against a plaintiff’s expert we discussed yesterday.
We are getting closer to the end. The focus should turn to what really matters: getting these women compensated for the harm done to them.
July 2, 2023: J&J’s Lawsuit Against Expert Witness Fails
J&J’s plan to gain an advantage in the talc litigation by filing frivolous lawsuits against the plaintiffs’ experts failed as expected yesterday. It lost its case against a prominent doctor, Jacqueline Moline, whom it accused of not disclosing alternative asbestos exposure evidence and making false statements regarding J&J’s baby powder.
This doomed-to-fail-but-sure-to-harass lawsuit centered around a 2019 article by Moline stating that 33 plaintiffs who used J&J talc products and developed mesothelioma had no other potential exposures to asbestos.
The New Jersey federal court judge ruled that Moline’s statements are protected by the First Amendment.
June 30, 2023: Court Expected To Allow J&J To Settle In Bankruptcy
Johnson & Johnson’s love affair with bankruptcy court continues, and it looks like the court will allow J&J to settle these claims in bankruptcy if the deal works out.
On Friday, the MDL judge denied the claimants’ motion – should say for some claimants, not others – for a temporary restraining order, stating that they failed to demonstrate actual harm that would justify an injunction.
The judge dismissed the argument that the settlement proposal would improperly limit the funds available to claimants, finding the claimants’ concerns about future harm speculative and insufficient for a preliminary injunction. He noted that the alleged harm depended on future events that might never happen.
So the stage is set for the settlement vote at the end of the month.
June 26, 2023: Expected Results Of Proposed Settlement Package
I’ve been going back and forth on my predictions on whether this talc powder settlement goes through. I’m certainly leaning towards thinking the settlement will be completed from talking to people over the last few weeks. It is by no means a done deal, however. There are still pockets of plaintiffs’ lawyers who are firmly opposed to it and will likely have their clients vote accordingly next month.
June 13, 2023: Plaintiff’s Lawyers Split On Stance Towards J&J’s Settlement Offer
Where are we on the talc powder settlement? Plaintiffs’ lawyers are split on whether to recommend J&J’s settlement offer to their clients. In terms of which way the wind is blowing today, it is toward the settlement.
June 7, 2023: New Talcum Powder Cancer Trial Underway In Texas
This week, a new talcum powder cancer trial against J&J got underway in Dallas, Texas. Opening statements were presented on Wednesday, and the trial is expected to take two to three weeks to complete. This is the first talc trial we have seen in a while and the first in Texas. [Update: this case settled.]
June 4, 2023: Oregon Jury Orders $260 Million Verdict
Johnson & Johnson keeps letting asbestos lawsuits go to trial. It never works. The latest message to them was sent by an Oregon jury that ordered the company to pay $260 million to a woman who attributed her cancer to the lifelong use of the company’s baby powder. The jury found J&J liable for Kyung Lee’s mesothelioma and awarded her $200 million in compensatory damages along with $60 million in punitive damages. Lee, diagnosed with cancer last year at age 48, argued that the talc-based baby powder contained asbestos.
May 21, 2023: New Journal Of Clinical Oncology Research Favors Talcum Powder Plaintiffs
New research published in the Journal of Clinical Oncology supports over 50,000 lawsuits against Johnson & Johnson, claiming that its talc-based baby powder causes ovarian cancer. The study, conducted by researchers from the National Institutes of Health, found a significant association between genital application of talc powder and ovarian cancer, especially with frequent or long-term use.
These findings are a death knell to Johnson & Johnson’s defense that its talc products are safe and asbestos-free. It also has the potential to stop this talc powder settlement from going through.
May 1, 2023: J&J Agrees to $6.5 Billion Global Settlement Through Subsidiary’s Bankruptcy
This morning, it was announced that J&J (through its talcum spinoff subsidiary) has agreed to a $6.5 billion global settlement deal to resolve the majority of the talcum powder ovarian cancer claims.
As part of the deal, the talcum plaintiffs will allow J&J’s subsidiary to file a third bankruptcy proceeding. The prior two bankruptcies faced strong opposition by the talc plaintiffs and were eventually dismissed. This settlement deal only covers the talcum powder claims involving ovarian cancer. J&J has already settled 95% of the talcum powder claims involving mesothelioma. Will the plaintiffs approve the deal? The vote is on July 26, 2023.
April 30, 2023: J&J Increases Offer To $8.9 Billion
When J&J initially attempted to pull the talcum powder litigation into bankruptcy, it came with an offer to set aside $2 billion for settlements. The amount was absurdly low. None of the talc plaintiffs supported it. This time around, however, J&J has increased the offer to $8.9 if the talc plaintiffs will allow a bankruptcy settlement, and they also have the support of a large segment of the talc plaintiffs and their lawyers. But 75% of the talc plaintiffs, which is required for bankruptcy plan approval, is a tough road with so many lawyers with large inventories of baby powder lawsuits opposed to the settlement.
What could solve the impasse? More billions.
April 25, 2023: Plaintiffs’ Lawyers And Victims Divided Over Settlement Offer
Talc cancer claimants have asked a judge to dismiss the Chapter 11 case filed by LTL Management LLC, a ridiculously made-up Johnson & Johnson subsidiary, saying the company is not financially distressed. LTL filed for Chapter 11 to settle tens of thousands of claims that J&J’s baby powders caused cancer. The 3rd Circuit dismissed its first Chapter 11 case in January, saying the company was not eligible for bankruptcy relief as it failed to show financial distress.
The claimants argue that LTL’s second Chapter 11 case is an abuse of the bankruptcy system and that it is being pursued in bad faith. J&J claims the bankruptcy settlement has “significant support” from firms representing an estimated 60,000 claimants. It is fair to say plaintiffs’ lawyers and victims are divided over the $8.9 billion settlement offer.
April 21, 2023: Judge Rules J&J Must Face New Lawsuits
A bankruptcy judge ruled that Johnson & Johnson must face new lawsuits alleging that the company sold tainted baby powder, causing cancer. Although trials for talc lawsuits are paused for at least 60 days, new lawsuits can be filed, and lawyers can begin preparing their cases. The judge expressed skepticism over J&J’s ridiculous effort to revive its strategy with a second bankruptcy case.
April 13, 2023: Split Opinions On How To Respond To $8.9 Billion Offer
The big news is the $8.9 billion over 25 years settlement offer. Lawyers representing cancer victims in the MDL class action have vowed to fight the settlement with talc claimants. Why? They think it is not enough money for 70,000 victims who have cancer. These lawyers argue that J&J should negotiate a larger settlement or litigate individual claims if the latest bankruptcy is dismissed.
But there is another group of lawyers outside of the leadership in the class action. These lawyers have collectively amassed tens of thousands of cases. This group wants to settle now for what many argue is less than these victims deserve. Their argument seems to be twofold. First, they argue the settlement – about an average of $100,000 per plaintiff – is fair.
That is a hard argument to make. But their second argument has more teeth: victims can no longer wait and want their money now.
April 12, 2023: J&J Second Attempt At Bankruptcy Explained
People are asking how J&J can file for bankruptcy again. The answer is complex and convoluted. But let’s try to explain it simply.
Johnson & Johnson asserts that bankruptcy is the only means to address both present and future talc lawsuits conclusively. In other words, it thinks it will pay less if there is a bankruptcy component that applies pressure for a settlement. Driving past 400 years of American history, the company argues that bankruptcy benefits all parties by distributing settlement payments more equitably and efficiently than trial courts, where some litigants receive significant awards while others receive nothing.
The gist of the 3rd Circuit decision was this is not a case – a profitable company making a subsidiary to take the legal liability and declare bankruptcy – Congress contemplated when drafting the Bankruptcy Code. But it also said that the subsidiary was not in financial distress because J&J promised unlimited funding.
So J&J jumped on the unlimited funding part of the holding and did not promise to provide unlimited funding for litigation. The company claims that its revised financing arrangements with its subsidiary address the appeals court’s concerns while still supplying funds for claim payments. As if offering victims less money would solve the overarching problem.
Attorneys representing cancer victims who oppose the agreement counter this with what you conclude is countering legal nonsense with legal nonsense: J&J fraudulently transferred $50 billion in assets away from LTL Management to circumvent the appeals court’s previous ruling. Hyperbole was not spared: victims’ lawyers call it the largest “fraudulent transfer in United States history.”
Notwithstanding the legal mumbo jumbo, J&J does not really think this bankruptcy will survive. But it is a way of trying to push this $8.9 billion settlement and keep pressure on plaintiffs.
April 10, 2023: New Bloomberg Article Concerning New Law In New Jersey
Bloomberg has an interesting article on a new law in New Jersey that is shedding new light on litigation funding in the baby powder class action lawsuit. Litigation funders Virage Capital Management and TRGP Capital invested in hundreds of claims against Johnson & Johnson (J&J) over talc products in exchange for a portion of any winnings. J&J is now offering to pay $8.9 billion to settle all lawsuits.
The funders’ involvement is public information due to a New Jersey court rule requiring the disclosure of certain information about outside funding backers. The rule aims to address the growing calls for regulation of litigation funders. J&J faces over 60,000 claims when you add up state and federal baby powder lawsuits. Third-party funding in mass tort claims has pros and cons. But there is no question that we are seeing how third-party funding can level the playing field between individuals and large corporations in court.
April 4, 2023: Third Circuit Denies J&J’s Request To Continue Automatic Stay
It is enjoyable to see the worm turn in this litigation. J&J took another hit this week when the Third Circuit denied J&J’s request to continue the automatic stay while J&J appeals a bankruptcy ruling to the U.S. Supreme Court. The automatic stay has frozen thousands of talcum powder cases and prevented new lawsuits from getting filed ever since J&J initiated the controversial effort to spin the talc liabilities off into a bankrupt subsidiary over a year ago. When the 3rd Circuit ruled that this bankruptcy was not valid a few months ago, the stay was removed. J&J was hoping to have it continued pending the SCOTUS appeal. But the answer was no.
April 1, 2023: J&J To Appeal To The Supreme Court
Johnson & Johnson announced it will appeal its 3rd Circuit bankruptcy loss to the U.S. Supreme Court last week. Any chance the Supreme Court is even willing to hear the appeal? Not really.
February 25, 2023: Tennessee Congressman Urges Investigation Into Cost Of J&J Talc Products For U.S. Government
A congressman from Tennessee is now demanding that the U.S. Government Accountability Office (GAO) launch an investigation into how much J&J talc products have cost the government over the years.
In a recent letter to the GAO, Rep. Steven Cohen (D-Ten.) accused J&J of ignoring the dangers of its talc products for years while tax dollars were spent treating those injured by exposure to the products. The demand comes just weeks after J&J’s significant loss in the 3rd Circuit Court of Appeals.
J&J needs to start making reasonable settlement offers to victims to begin to put all of this behind it. It is a stain on one of the world’s greatest companies.
February 14, 2023: Bankruptcy Judge Announces Intention To Dismiss J&J Case
At a hearing today in New Jersey, U.S. Bankruptcy Judge Michael Kaplan announced his intention in light of the 3rd U.S. Circuit Court of Appeals ruling to dismiss the bankruptcy case.
February 8, 2023: New Judge In Talcum Powder MDL
In the latest MDL 2738 update, we report a new beginning in the talc powder litigation: a new judge. Following the retirement of Judge Freda L. Wolfson, who had presided over the baby powder litigation, the JPML Panel appointed U.S. District Judge Michael Shipp to preside over the second act of this litigation. It seems fitting to have a new judge as we restart the baby powder class action lawsuit. Judger Wolfson controlled the talc MDL for seven years.
January 31, 2023: Post Concerning 3rd Circuit Baby Powder Bankruptcy Ruling
Our post on the 3rd Circuit baby powder bankruptcy ruling.
January 30, 2023: Third Circuit Rejects J&J’s Attempt At Bankruptcy
The Third Circuit rejected J&J’s attempt to dump off its mounting talcum powder liability into bankruptcy. In an opinion issued today, the court dismissed the Chapter 11 bankruptcy filed by a subsidiary of J&J created to offload its growing talc liabilities. J&J’s stock dropped 3% on the news, the most significant single-day dip in over two years. J&J has already vowed to appeal the ruling to the U.S. Supreme Court.
January 2, 2023: Prediction Concerning 3rd Circuit Court’s Decision On J&J Bankruptcy
Less of an update than a prediction. The 3rd Circuit will reject J&J’s bankruptcy gambit in February. J&J will appeal to the Supreme Court but settle these lawsuits in massive numbers before the claims are resolved. (Arguably, this is more of a hope than a prediction. But we are excited about the possibility of progress in 2023 in this litigation after years of quicksand.)
December 25, 2022: 3rd Circuit Oral Arguments
Rewatching the 3rd Circuit oral arguments today. It is worth a watch. It is well-argued on both sides, and this is a strong panel of judges. You don’t get the impression that this panel of judges will allow this “bankruptcy to avoid bankruptcy” to stand. But that could be my bias talking.
December 22, 2022: Hair Relaxer Lawsuits In Regard To Ovarian Cancer
Hair relaxer lawsuits are being filed around the country by women who claim injuries from chemical hair straighteners. One injury that interests women in the talcum powder litigation is relaxer-induced ovarian cancer. There is good science to support these claims.
October 1, 2022: New Yorker Article
This New Yorker article on J&J is a great read.
September 20, 2022 Update: Judges’ Skeptical Litigation Advantage Is Not Motivating J&J
Yesterday, a 3-judge panel at the Third Circuit Court of Appeals in Philadelphia heard oral arguments in the appeal challenging the validity of J&J’s controversial effort to spin off its talcum powder liabilities into bankruptcy. J&J created a new corporate entity called LTL Management, transferred all the talc liabilities to it, and then LTL promptly filed bankruptcy.
The issue on appeal is whether this was permissible or whether the bankruptcy spin-off was filed in bad faith and should be dismissed. The panel of judges hit J&J’s attorney with many challenging questions.
One of those questions was whether the bankruptcy was for an advantage in the litigation. How could J&J lawyers pretend that was not the impetus for the bankruptcy filing? Somehow, they did, arguing that the advantage is a byproduct of a more overarching goal.
The judges seemed skeptical and raised many mass tort lawyers’ concerns that allowing this bankruptcy would spark a wave of similar bankruptcy filings (like the 3M earplug claims) by financially solvent companies looking to shed litigation liabilities.
The results of this ruling will have a tangible impact on talcum powder settlement amounts. If the bankruptcy holds, victims will still get settlement compensation payouts. But they are likely to be lower if the risk of colossal jury awards is not hanging over J&J’s head and they can resolve these claims in bankruptcy court.
Our baby powder lawyers are hoping the 3rd Circuit gets this right. The purpose of our bankruptcy laws for a company seeking insolvency – is to protect creditors. Instead, J&J is trying to use the Bankruptcy Code as a litigation management device for a company worth nearly $500 billion. That cannot be the purpose of bankruptcy.
When will J&J Settle the Remaining Talcum Powder Lawsuits?
Contact Miller & Zois to File a Talcum Powder Lawsuit
It is NOT too late to file your talcum powder lawsuit – at least not for many of you. If you used a talcum powder product for an extended period and were subsequently diagnosed with ovarian cancer, call our talcum powder lawsuit attorneys at 800-553-8082 or contact us online.