A group of cancer victims has asked a federal judge to block Johnson & Johnson’s proposed bankruptcy settlement of tens of thousands of lawsuits alleging the company’s baby powder and other talc products caused their illnesses, according to a US court filing.
Reuters reports that the plaintiffs filed a motion last week in a New Jersey court seeking a temporary restraining order to stop a J&J subsidiary from filing bankruptcy in Texas or another jurisdiction outside New Jersey.
The plaintiffs contend they will suffer “irreparable harm” unless a court order blocks such a filing.
J&J intends to have a subsidiary declare bankruptcy after claimants’ vote on a $6.48bn settlement offer. The company hopes to garner support from 75% of claimants as part of the prepackaged bankruptcy plan, and has set a 26 July voting deadline.
“This is yet another meritless pleading by the same small group of plaintiff law firms who have fought every single effort to resolve this litigation to date,” said Erik Haas, J&J’s worldwide vice president of litigation.
He repeated longstanding contentions that opposing plaintiffs’ lawyers are holding out for an additional fees “windfall” unavailable in bankruptcy and putting their economic interests before that of their clients, a charge those attorneys deny.
The company faces lawsuits from more than 61 000 plaintiffs alleging its talc caused ovarian cancer or mesothelioma, linked to asbestos exposure.
J&J maintains its talc and does not cause cancer, saying a bankruptcy settlement pays claimants fairly and equitably as opposed to the civil justice system in which most plaintiffs receive nothing while some win outsize awards.
Haas has claimed there is growing support for the company’s proposed bankruptcy settlement, including from lawyers representing more than 70 000 claimants. That figure includes claimants who have not yet sued J&J.
Reuters article – Cancer victims ask court to block J&J talc bankruptcy (Open access)
See more from MedicalBrief archives:
Cancer victims sue J&J over alleged ‘fraudulent’ bankruptcies
J&J agrees to pay $700m to resolve talc cases
Jury awards $4.7bn pay-out to women using J&J talc products