In a legal saga that has spanned years, Johnson & Johnson finds itself embroiled in yet another legal battle. On Wednesday, a group of cancer victims filed a lawsuit against the healthcare giant, accusing it of fraudulent tactics in its handling of thousands of lawsuits concerning its talc products.
The plaintiffs, representing over 50,000 individuals who have sued Johnson & Johnson over alleged links between its talc products and cancer, filed the proposed class action in a New Jersey federal court. They claim that the company has used deceptive maneuvers, including the establishment of a shell company’s bankruptcy, to evade accountability and deny plaintiffs their day in court.
According to the lawsuit, Johnson & Johnson’s bankruptcy strategy has effectively shielded billions of dollars from those seeking damages, constituting what the plaintiffs’ attorney, Mike Papantonio, describes as a “dark game of chess” with the legal and financial systems of the country.
In response, Johnson & Johnson’s vice president of litigation, Erik Haas, labeled the lawsuit as a “Hail Mary pass” orchestrated by plaintiffs’ lawyers to impede the voting process on the company’s proposed bankruptcy settlement. Haas emphasized the company’s commitment to a fair resolution of the litigation, maintaining that its talc products are safe and do not cause cancer.
Most of the lawsuits against Johnson & Johnson revolve around allegations that its talc products, including baby powder, contain asbestos, a known carcinogen. Despite the company’s assurances of safety, the litigation has persisted, with plaintiffs citing adverse health effects, including ovarian cancer and mesothelioma.
Johnson & Johnson’s previous attempts to resolve the talc litigation through bankruptcy maneuvers have faced legal setbacks, with courts ruling against the company’s eligibility for bankruptcy protection. Undeterred, the company plans to pursue a third bankruptcy, contingent on securing sufficient votes for a $6.48 billion talc settlement.
The latest lawsuit seeks to invalidate previous corporate transactions, including the so-called “Texas two-step,” which the plaintiffs allege were fraudulent attempts to shield Johnson & Johnson’s assets from talc-related liabilities. Additionally, the lawsuit demands compensatory and punitive damages for the alleged fraudulent actions.
Despite the legal challenges, Johnson & Johnson asserts that its proposed third bankruptcy will garner widespread support from claimants with talc-related claims. The company aims to expedite the resolution process by reaching settlements with various stakeholders, including law firms representing mesothelioma patients and U.S. states alleging inadequate warnings about talc product dangers.
As litigation against Johnson & Johnson continues, the outcome of this latest legal skirmish could have far-reaching implications for both the company and the thousands of individuals affected by its talc products.
