Johnson & Johnson’s most recent attempt to use bankruptcy to resolve talcum powder lawsuits was dismissed for the second time in 2023 after a judge ruled the J&J subsidiary created to resolve the lawsuits was still not in financial distress. On July 28, U.S. Bankruptcy Judge Michael Kaplan ruled that J&J’s subsidiary, LTL Management, was not in “immediate financial distress” and therefore not eligible to resolve its talcum powder liabilities through the bankruptcy process. 

While J&J has vowed to appeal the decision, Judge Kaplan’s ruling will allow talcum powder lawsuits to re-enter the civil court system and continue toward trials around the country. Most cases had been stayed when LTL’s second bankruptcy was filed in April 2023.

The Minnesota Talcum Powder Attorneys at GoldenbergLaw have been representing women diagnosed with ovarian cancer after using J&J’s Talcum Powder since 2014. Judge Kaplan’s decision allows the victims of J&J’s decades of negligence to continue their pursuit of justice in the court of law. If you or a loved one has been diagnosed with ovarian cancer after using talcum powder, contact us today for a free talcum powder lawsuit consultation. 

Talcum Powder Settlement Program faced Strong Opposition

The Third Circuit Court of Appeals ruled in January 2023 that LTL’s first attempt at bankruptcy was not filed in good faith and instructed Judge Kaplan to dismiss the case. Just hours after its first bankruptcy was dismissed, LTL re-filed for bankruptcy on April 4 with a proposed $8.9 billion talcum powder settlement resolution plan. However, many cancer victims who had filed suit against J&J were not aware of this settlement agreement and offered strong opposition to the resolution plan. Within weeks, the Talc Claimants Committee (TCC) filed a motion to dismiss LTL’s second bankruptcy gambit pursuant to the Third Circuit’s previous ruling that LTL was not in financial distress. 

In addition to the TCC, LTL’s second bankruptcy attempt was also opposed by the Office of the U.S. Trustee, which serves as the Department of Justice’s bankruptcy watchdog. The Office of the Trustee argued in May that the bankruptcy court is not meant for parties who “lack a legitimate bankruptcy purpose or that seek to abuse the bankruptcy process to hinder or delay their creditors.”

The TCC, a group of attorneys appointed by the Office of the U.S. Trustee to represent the interests of cancer victims in the LTL bankruptcy, hailed the dismissal as a victory for justice and client rights. 

“This ruling sends a clear message: multibillion-dollar, wholly solvent companies like J&J should not be allowed to use and in fact abuse bankruptcy laws to avoid accountability,” said Brown Rudnick’s David Molton, one of the co-counsels representing the Committee. “We are reassured by the Bankruptcy Court’s reaffirmation that it will not allow solvent corporations to abuse the system and impose coercive, low-value and cram-down solutions on nonconsenting claimants. Justice should and now will triumph over corporate greed and legal chicanery.” 

“The claimants have waited long enough. Untold numbers of cancer victims have died while Johnson & Johnson attempted to manipulate the bankruptcy system to limit its liabilities,” added Molton. “Now victims and their families can seek justice through the tort system – by presenting their case before a jury of their peers in courts of their own choosing.” 

Judge Kaplan’s ruling came just over a week after a California jury awarded $18.8 million to a man diagnosed with mesothelioma after using J&J’s talcum powder since childhood. LTL’s latest bankruptcy dismissal now allows many other talcum powder lawsuits around the country to proceed toward trial. 

Minnesota Talcum Powder Attorneys

The Talcum Powder attorneys at GoldenbergLaw continue to fight for cancer patients who have been harmed by J&J’s talcum powder. Judge Kaplan’s prudent decision now allows J&J’s victims to seek justice in the proper venue: the courtroom in front of a jury of peers. We are continuing to evaluate new talcum powder cases. Contact us today at 1-800-903-1643 for a free case consultation.