Johnson & Johnson Subsidiary Files For Bankruptcy Protection To Handle Talc Products Claims
Johnson & Johnson announced on Thursday that a subsidiary it recently created to handle claims that its talc products cause cancer has filed for bankruptcy.
The company said in a statement that it hopes its filing for Chapter 11 protection will help resolve current and future claims “in a manner that is fair to all parties.”
NOT A WORD. said he would provide money to the subsidiary for amounts owed by the bankruptcy court and that he would create a $2 billion trust for this reason. Certain streams of royalty income have been allocated to the subsidiary to pay for all future costs, he added.
Andy Birchfield, a lawyer with the law firm Beasley Allen, who has worked on litigation against Johnson & Johnson, said in a statement that the company’s filing was an “attempt to hide behind bankruptcy”.
“It stinks,” he said. “J.&J. can run, but he can’t hide.
Mr. Birchfield compared the filing to similar moves by the Boy Scouts of America and USA Gymnastics, which also filed for bankruptcy this year while facing legal action.
âHere is another example of the rich and powerful using bankruptcy as a hiding place to protect their profits and avoid liability,â he said. “The entire nation, Congress, and more than 30,000 victims of J.&J.’s dangerous talc product are saying ‘no’ to this flagrant and fraudulent abuse of the bankruptcy system.”
Michael Ullmann, executive vice president and general counsel at Johnson & Johnson, said the company continues to “stand firmly behind the safety of our cosmetic talc products.”
“We are taking these steps to bring certainty to all parties involved in the cosmetic talc business,” he said in a statement.
The move is the latest twist in the company’s talc products saga, including its signature baby powder. Johnson & Johnson halted North American sales of the product last year as the company faces thousands of lawsuits from customers who claim its products cause cancer.
The subsidiary, LTL Management, will now bear the brunt of the claims, the company said. Johnson & Johnson itself and its other subsidiaries have not filed for bankruptcy and “will continue to operate as usual,” he said.
John Kim, LTL’s chief legal officer, said in a statement that with financial support from the parent company, the subsidiary is “confident that all parties will be treated fairly during this process.”
Johnson & Johnson said its filing was “not a concession of liability but rather a means to achieve a fair and effective resolution of the claims raised in the cosmetic talc litigation.”
Although he prevailed in some cases, the company suffered significant losses in court for other claims. In June, a Missouri appeals court ordered the company to pay $2.1 billion in damages to women who said the company’s talc products, including its powder for baby, had caused their ovarian cancer.
In 2018, Johnson & Johnson was ordered to pay $4.69 billion to 22 women and their families, who said they developed ovarian cancer from asbestos in talc products. the society.