July 29, 2023 at 1:15 p.m
Pharmaceutical company Johnson & Johnson (J&J) cannot use a bankruptcy case to pressure tens of thousands of people to accept an $8.9 billion settlement. That has been determined by an American judge.
It is the second time this year that J&J’s attempt to settle numerous lawsuits over baby powder that may be carcinogenic has failed.
The parent company of the Leiden company Janssen has about 100,000 claims due to complaints about the talcum powder, which is said to contain asbestos. Over the years, thousands of women are said to have contracted ovarian or asbestos cancer as a result. J&J maintains that the talcum powder is not harmful, but has taken it off the shelves and has expressed a willingness to pay billions for a settlement.
For that settlement, the group has placed all claims and liability with a specially established company, LTL, which receives money for paying the claims. Bankruptcy has also been requested for LTL so that the matter cannot continue to haunt J&J afterwards. Lawyers for some of the victims oppose the whole construction because they think their clients should actually receive more compensation.
First attempt earlier this year
LTL’s first bankruptcy filing was rejected earlier this year. A judge then ruled that LTL as a company was not in financial trouble enough to qualify for bankruptcy. Subsequently, J&J quickly decided to submit a new application, arguing that there would now be more support from victims. But the judge does not agree with that reasoning because there would still be no reason for bankruptcy.
Andy Birchfield, a lawyer who represents victims, says the second filing was to prevent juries from hearing the lawsuits against J&J brought by the victims. “It’s time for the nonsense to stop and for J&J to take responsibility,” he said.
However, the pharmaceutical company argues that the proposed settlement offers a fairer and faster solution for many victims of the powder than if they all litigated separately in courts. J&J also says that continuing litigation sometimes comes down to a “lottery” in which some people with claims get a lot of compensation and others get nothing.
2023-07-29 11:15:36
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