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Johnson & Johnson is now negotiating with plaintiffs' lawyers who are opposed to the company's proposed $6.48 billion settlement.
Johnson & Johnson (J&J) is currently negotiating with plaintiffs’ lawyers who have opposed the company’s proposed $6.48 billion settlement of lawsuits alleging that its baby powder and other talc products caused cancer. The company seeks to eliminate opposition and finalize the settlement through the bankruptcy of a subsidiary.
J&J has announced its intent to resolve the litigation by placing a subsidiary company into bankruptcy and consolidating all claims into a single settlement.
This approach, however, has faced significant legal hurdles, with previous attempts being rebuffed twice by federal courts.
The company argues that most claimants support the settlement, but it has temporarily paused the vote count to gather additional support from plaintiffs who have opposed the deal until recently.
J&J’s worldwide vice president of litigation, Erik Haas, stated that the company has agreed to a short extension of the certification timeline. This extension is intended to give plaintiffs’ attorneys time to discuss the settlement with their clients and potentially secure more support for the plan.
Andy Birchfield, a leading attorney opposing J&J’s proposed bankruptcy settlement, expressed openness to negotiations but remained firm in his opposition to another Chapter 11 filing.
Birchfield emphasized the need for fair compensation for victims of ovarian cancer and indicated readiness to continue the legal fight if J&J pursues bankruptcy again.
J&J faces lawsuits from more than 62,000 plaintiffs who allege that its talc products were contaminated with asbestos and caused ovarian and other cancers. While J&J denies these allegations, maintaining that its products are safe and asbestos-free, the company is pursuing this global settlement to prevent future litigation.
If the settlement is approved with at least 75% of the talc claimants voting, it would end all ongoing and future lawsuits.
The settlement specifically focuses on claims involving ovarian and other gynecological cancers, building on a previous resolution of most mesothelioma-related lawsuits outside of Chapter 11 proceedings.
Despite J&J’s efforts to reach a global settlement, the company faces significant legal challenges. If the bankruptcy route fails, J&J could remain vulnerable to further lawsuits and potential multibillion-dollar verdicts.
While J&J has won many of the ovarian cancer cases that have gone to attempt, there have also been some significant losses, including a $2.12 billion verdict in favor of 22 women who claimed their ovarian cancer was caused by asbestos in J&J’s talc.
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