Johnson & Johnson Subsidiary Seeks Bankruptcy Protection to Handle Talc Product Claims

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Johnson & Johnson declared on Thursday that a subsidiary that it not too long ago designed to handle statements that assert that its talc-centered products and solutions brought about most cancers experienced filed for bankruptcy defense.

The business stated in a statement that it hoped its filing for Chapter 11 security would support resolve latest and foreseeable future promises “in a fashion that is equitable to all get-togethers.”

J.&J. explained that it would present money for the subsidiary for what ever quantities the individual bankruptcy court docket made a decision were owed, and that it would make a $2 billion trust for that motive. Selected royalty revenue streams have been allocated for the subsidiary to spend for any potential costs, it added.

Andy Birchfield, a lawyer for Beasley Allen Law Company, which has labored on litigation in opposition to Johnson & Johnson, stated in a assertion that the company’s submitting was an “attempt to hide behind personal bankruptcy.”

“This stinks,” he claimed. “J.&J. can run, but it can not hide.”

Mr. Birchfield likened the submitting to related moves by the Boy Scouts of The us and U.S.A. Gymnastics, which also filed for personal bankruptcy this 12 months while facing lawful promises.

“Here’s one more example of the wealthy and effective working with individual bankruptcy as a hiding area to shield their income and stay away from responsibility,” he reported. “The overall country, Congress and extra than 30,000 victims of J.&J.’s harmful talc product or service say ‘no’ to this flagrant and fraudulent abuse of the individual bankruptcy system.”

Michael Ullmann, government vice president and normal counsel at Johnson & Johnson, explained the company ongoing to “stand firmly behind the safety of our cosmetic talc products and solutions.”

“We are taking these actions to convey certainty to all events involved in the beauty talc instances,” he reported in a assertion.

The move is the hottest twist in the saga of the company’s talc-based mostly items, like its legendary toddler powder. Johnson & Johnson discontinued its North American gross sales of the merchandise previous calendar year, as the enterprise faces hundreds of lawsuits submitted by buyers who say its merchandise bring about cancer.

The subsidiary, LTL Administration, will now bear the brunt of the promises, the firm said. Johnson & Johnson by itself and its other affiliates did not file for personal bankruptcy protection and “will continue on to operate their businesses as usual,” it reported.

John Kim, the main lawful officer of LTL, stated in a assertion that with the economic backing from the father or mother firm, the subsidiary was “confident all events will be taken care of equitably all through this approach.”

Johnson & Johnson said that its submitting was “not a concession of legal responsibility but instead a implies to reach an equitable and effective resolution of the promises raised in the beauty talc litigation.”

Although it has prevailed in some scenarios, the company has experienced significant losses in court docket about other promises. In June, a Missouri appeals courtroom ordered the organization to spend $2.1 billion in damages to girls who claimed the company’s talcum products and solutions, such as its toddler powder, induced their ovarian cancers.

In 2018, Johnson & Johnson was requested to shell out $4.69 billion to 22 girls and their family members, who claimed that they developed ovarian most cancers from asbestos in the company’s talcum-powder products and solutions.