The company is currently dealing with a surge of lawsuits alleging that its talc products have been linked to cancer. To address these legal challenges, a proposed settlement has been put forward, pending approval by a bankruptcy court. Importantly, this settlement has garnered support from the lawyers representing the plaintiffs involved in the litigation.
Johnson & Johnson has filed for a bankruptcy court’s approval of a proposed settlement to address the influx of lawsuits linking their talc products to cancer. The company intends to establish an $8.9 billion trust, funded over 25 years through a subsidiary that filed for bankruptcy. This settlement, if accepted, aims to resolve all existing and future claims related to Johnson & Johnson’s talc-containing products, including popular items like baby powder.
In response to the proposed settlement, a group of lawyers representing nearly 70,000 plaintiffs, including families of those affected by ovarian cancer and mesothelioma, expressed their support and hailed it as a landmark achievement. They emphasized the significance of this resolution for the thousands of women suffering from gynecological cancers associated with Johnson & Johnson’s talc-based products.
To finalize the settlement, the court needs to approve the new bankruptcy filing submitted by Johnson & Johnson’s subsidiary, LTL Management, and evaluate the terms of the settlement itself. Additionally, the company must secure sufficient support from the claimants to move forward with the settlement plan. Johnson & Johnson previously established LTL Management as a means of shielding itself from talc litigation; however, an earlier bankruptcy filing by the subsidiary was challenged by the plaintiffs and dismissed by a U.S. appeals court earlier this year. The court ruled that bankruptcy was not the appropriate avenue for resolving the matter.
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