A bankruptcy transfer from Johnson & Johnson might stall any talcum powder settlements for the hundreds of households which have sued the corporate for billions of {dollars} in damages in recent times.
Officers with Johnson & Johnson stated they’ve created a brand new subsidiary known as LTL Administration. Johnson & Johnson stated it then moved $2 billion in child powder lawsuit settlement cash to LTL, then submitted LTL for bankruptcy. LTL Administration filed for bankruptcy safety in North Carolina on Thursday and listed its liabilities between $1 billion and $10 billion.
Johnson & Johnson itself has not filed for bankruptcy and neither has any of its different subsidiaries like Aveeno and Neutrogena.
The bankruptcy submitting comes as Johnson & Johnson has confronted public scrutiny over the long-term well being results of its child powder. 1000’s of ladies have sued Johnson & Johnson claiming the talcum used within the child powder gave them ovarian most cancers. Talcum is a mineral related in construction to asbestos, which is thought to trigger most cancers, and they’re typically obtained from the identical mines.
A U.S. government-led analysis of 250,000 girls, the biggest such examine to take a look at the query, discovered no robust proof linking talc powder with ovarian most cancers. The lead creator of the evaluation known as the outcomes “very ambiguous” nonetheless.
Because the lawsuits have surfaced, Johnson & Johnson has stopped promoting its talc powder. The corporate has put aside virtually $4 billion for settling future lawsuits tied to the product.
In an announcement Thursday, Johnson & Johnson stated “all cosmetic talc cases will be stayed pending the outcome of the proceedings,” that means no lawsuit settlements will probably be paid till bankruptcy court docket officers decide who will get how a lot and when. Earlier this yr, a bunch of Black girls sued Johnson & Johnson, alleging the corporate marketed to them for many years regardless of realizing its child powder trigger most cancers.
Johnson & Johnson additionally stated this week that creating LTL Administration and submitting for bankruptcy “are not a concession of liability” and as a substitute is the easiest way to finish the talcum lawsuits.
“We are taking these actions to bring certainty to all parties involved in the cosmetic talc cases,” Johnson & Johnson legal professional Michael Ullmann stated in a statement. “While we continue to stand firmly behind the safety of our cosmetic talc products, we believe resolving this matter as quickly and efficiently as possible is in the best interests of the company and all stakeholders.”
Linda Lipsen, one of many legal professionals representing girls with most cancers claims, known as Johnson & Johnson’s transfer “an unconscionable abuse of the legal system.”
“There are countless Americans suffering from cancer, or mourning the death of a loved one, because of the toxic baby powder that Johnson & Johnson put on the market that has made it one of the most profitable pharmaceutical corporations in the world,” Lipsen stated in a statement. “Their conduct and now bankruptcy gimmick is as despicable as it is brazen.”
