Mesothelioma victims win first round of Johnson & Johnson bankruptcy battle


Posted on November 12, 2021

Facing tens of thousands of lawsuits from victims of malignant mesothelioma and ovarian cancer, Johnson & Johnson recently attempted to evade legal liability by transferring their talc business to a newly incorporated company and then immediately filing for bankruptcy. Although battles over the legality of this maneuver are expected to continue for some time, the company lost the first round, with a judge overseeing its Chapter 11 filing refusing to stop the talcum cases from moving forward.

Two separate bankruptcy judge orders favor mesothelioma claimants

At the end of last month, U.S. bankruptcy judge Craig Whitley ruled against Johnson & Johnson’s interests in two different orders over mesothelioma lawsuits. In the first, he ordered the newly formed company LTL Management (which Johnson & Johnson formed in order to separate themselves from talc-related responsibilities) to show why his bankruptcy case should not be transferred from the Western District of North Carolina. in New Jersey. In the second, he refused to grant a general stay of all proceedings against the new company.

LTL Management’s formation and immediate bankruptcy represent a maneuver known as the “Texas Two Step” that was intended to protect the assets of parent company Johnson and Johnson from the blame mesothelioma and ovarian cancer victims. asbestos in the company’s talc products for their disease. Shortly after its formation, LTL applied for a temporary restraining order against the plaintiffs, insurance companies and indemnified companies, but the judge rejected their request, saying they had not presented sufficient evidence to meet the burden of reparation they sought. Although the lawsuits against the Johnson & Johnson subsidiary Johnson & Johnson Consumer Inc. and LTL Management were temporarily suspended, the stay did not include the parent company.

Georgia Bankruptcy Filing Called “Cherry Picking” By Mesothelioma Complainant Lawyers

Lawyers for mesothelioma victims viewed Johnson & Johnson’s filing for bankruptcy in North Carolina as “the icing on the cake” and said the company had hoped “the court would be blind to justice.” They noted that “J&J’s chief legal counsel admitted on the witness stand that J&J had no real connection to North Carolina.” As the case progresses through the courts, lawyers are calling on Congress to pass a bill that would end the type of bankruptcy protection that Johnson & Johnson is seeking, which they say is “so clearly designed to avoid its responsibility “.

If you or someone you love has been affected by the asbestos in a talcum product, Patient Advocates at can help. Contact us today at 1-800-692-8608.

Written by Terri Oppenheimer

Terri Heimann Oppenheimer
Terri Heimann Oppenheimer is the editor-in-chief of our news blog She graduated from the College of William and Mary with a degree in English. Terri believes in knowledge is power and she is committed to sharing news about the impact of Mesothelioma, the latest research and medical breakthroughs, and the stories of victims.

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