In a dramatic escalation in the ongoing saga surrounding Johnson & Johnson’s talcum powder, a group of cancer victims has initiated a new lawsuit, alleging that the healthcare titan orchestrated a complex series of maneuvers to dodge accountability. Filed in a New Jersey federal court, this class action seeks to represent a broad swath of plaintiffs affected by the products purportedly tainted with asbestos—a mineral closely linked to cancers such as mesothelioma and ovarian cancer.
The Allegations: Dodging the Legal Bullet
The central accusation against Johnson & Johnson is a deliberate ploy dubbed the “Texas two-step.” This controversial legal strategy involves the creation of a subsidiary to inherit liabilities, which then promptly seeks bankruptcy protection.
This move, executed in 2021, effectively stalled ongoing lawsuits, with the courts later determining that the financial distress necessary to justify bankruptcy was not evident in this case. Critics of the maneuver describe it as a blatant case of “asset stripping” and “bait-and-switch” fraud, designed to shield valuable assets while leaving liabilities in a legally untouchable state.
Corporate Response: Settlements and Strategies
Despite the severity of these allegations, Johnson & Johnson remains steadfast in its approach, focusing on settling the myriad lawsuits it faces. Erik Haas, the company’s worldwide vice president of litigation, emphasized their commitment to resolving these cases comprehensively.
“Make no mistake, the facts are clear,” Haas stated, highlighting that company has proposed one of the largest settlements in the history of mass tort litigation, amounting to $6.475 billion. He also pointed out the company’s strong track record in court, with victories in 16 of 17 ovarian cancer trials.
The Battle Over Bankruptcy
The litigation strategy involving multiple bankruptcy filings is particularly controversial. company claims these moves are part of a broader strategy to fairly compensate victims through a structured settlement process.
Currently, a voting period is open, allowing those affected to weigh in on the proposed $6.475 billion settlement. However, the plaintiffs’ lawyers argue that these tactics deny victims their rightful day in court, labeling the latest bankruptcy filing as an “unfulfilled scheme.”
Legal Battles Over Johnson & Johnson’s Talcum Powder
As the legal battles unfold, the stakes are high for both the plaintiffs seeking justice and a corporate behemoth defending its reputation and financial interests. The outcomes of these cases could set precedents for how large corporations handle mass tort liabilities in the future, particularly in the realm of consumer safety.
For now, all eyes are on the courts as they navigate this complex legal landscape, determining the fate of thousands who claim harm from one of its most iconic products.
