Johnson & Johnson unit seeks to halt 38,000 lawsuits over its alleged 'cancer causing' talc
J&J talc
A Johnson & Johnson (J&J) subsidiary has once again requested an American judge to delay 38,000 lawsuits worth tens of thousands of dollars. These lawsuits accuse their baby powder and other talc products of causing cancer. This comes as the company makes another attempt at "resolving the litigation in bankruptcy after a federal appeals court found its first attempt improper," reports Reuters.
On Tuesday, LTL Management, the J&J subsidiary in a hearing in Trenton, New Jersey, will argue that the so-called "automatic stay" under bankruptcy law should also protect J&J which has not filed for bankruptcy and has a market value of over $430 billion.
Bankruptcy law places an "automatic stay" on legal action against a business while it is in Chapter 11 proceedings.
LTL's first bankruptcy filing in 2021 placed the lawsuits on hold, but the Philadelphia-based 3rd US Circuit Court of Appeals ruled in January that LTL was not eligible for bankruptcy because it was not in "financial distress."
Two groups of cancer plaintiffs and the US Department of Justice's bankruptcy watchdog as per Reuters have objected to the company's plea for a stay, claiming that it is a deceptive attempt to bypass the earlier court ruling and that the second bankruptcy has "slim to nonexistent prospects" of success.
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The plaintiffs are alleging that J&J's baby powder and other talc products cause cancer. J&J has offered $8.9 billionto settle the claims but has not provided details on how much each claimant would receive from the deal. LTL argues that litigation against J&J would imperil its efforts to negotiate a comprehensive settlement of all current and future talc claims in its bankruptcy.
(With inputs from agencies)
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