In a significant legal development, a New Jersey appeals court has invalidated a $223.8 million verdict against Johnson &amp; Johnson (J&amp;J) that had been given to four plaintiffs alleging cancer due to asbestos exposure in the company's talc powder products. &nbsp;

The Superior Court of New Jersey, Appellate Division determined that the lower court judge had made a mistake in permitting certain scientific expert testimony presented by the plaintiffs during the trial.&nbsp;

According to a Reuters report, Erik Haas, J&amp;J Worldwide Vice President of Litigation, welcomed the decision and criticised the scientific evidence presented by the plaintiffs' experts, stating, "The decision resoundingly rejects ... the 'junk science' advanced by purported 'experts' paid by the mass tort asbestos bar." He reiterated the company's stance that their talc products are safe and asbestos-free.&nbsp;

The initial jury verdict had mandated J&amp;J to pay $37.2 million in compensatory damages and a staggering $750 million in punitive damages. However, this sum was automatically reduced to $186.5 million in accordance with state law.&nbsp;

In overturning the verdict and ordering a new trial, a three-judge panel from the appeals court noted that the trial court had not adequately fulfilled its "gatekeeping role" in evaluating whether the plaintiffs' experts grounded their testimony in solid scientific principles. The panel found that three of the experts had failed to sufficiently explain the basis of their opinions linking cancer to asbestos exposure in talc products.&nbsp;

Of note, J&amp;J is involved in a separate lawsuit against one of these experts, Jacqueline Moline, regarding a 2019 study she co-authored. However, this particular study was not a focal point of the recent court decision.&nbsp;

Reuters cited Jacqueline Moline, who testified in favour of plaintiffs in over 200 talc cancer cases, has argued that the lawsuit against her is an attempt to intimidate scientific experts and discourage them from testifying against J&amp;J.&nbsp;

Johnson &amp; Johnson faces a staggering number of lawsuits, with over 38,000 claims alleging that their talc products, including Johnson's baby powder, may contain asbestos and have led to various cancers, including ovarian cancer and mesothelioma, a cancer type linked to asbestos exposure. The outcomes of these lawsuits have varied, with some major victories for plaintiffs, including a $2.1 billion judgment awarded to 22 women with ovarian cancer.&nbsp;

While J&amp;J has experienced reversals in some cases, such as a $117 million verdict in the same New Jersey appeals court and a $120 million verdict in New York, their most recent legal win may have significant implications as they continue to face talc-related litigation.&nbsp;

This development follows J&amp;J's unsuccessful attempts to move tens of thousands of talc-related claims into bankruptcy court, where they sought to resolve them through an $8.9 billion proposed settlement. The company is currently appealing the ruling that denied this move.&nbsp;

The resumption of trials after a pause during the bankruptcy petition is expected to impact the trajectory of talc-related litigation. J&amp;J has disclosed that the cost of talc-related verdicts, settlements, and legal fees has reached approximately $4.5 billion. Due to mounting lawsuits and concerns, the company made the decision to cease the sale of talc-based baby powder in favour of cornstarch-based alternatives.&nbsp;

(With inputs from Reuters)&nbsp;

In a significant legal development, a New Jersey appeals court has invalidated a $223.8 million verdict against Johnson & Johnson (J&J) that had been given to four plaintiffs alleging cancer due to asbestos exposure in the company's talc powder products.

In a significant legal development, a New Jersey appeals court has invalidated a $223.8 million verdict against Johnson & Johnson (J&J) that had been given to four plaintiffs alleging cancer due to asbestos exposure in the company's talc powder products. The Superior Court of New Jersey, Appellate Division determined that the lower court judge had made a mistake in permitting certain scientific expert testimony presented by the plaintiffs during the trial. According to a Reuters report, Erik Haas, J&J Worldwide Vice President of Litigation, welcomed the decision and criticised the scientific evidence presented by the plaintiffs' experts, stating, "The decision resoundingly rejects ... the 'junk science' advanced by purported 'experts' paid by the mass tort asbestos bar." He reiterated the company's stance that their talc products are safe and asbestos-free. The initial jury verdict had mandated J&J to pay $37.2 million in compensatory damages and a staggering $750 million in punitive damages. However, this sum was automatically reduced to $186.5 million in accordance with state law. In overturning the verdict and ordering a new trial, a three-judge panel from the appeals court noted that the trial court had not adequately fulfilled its "gatekeeping role" in evaluating whether the plaintiffs' experts grounded their testimony in solid scientific principles. The panel found that three of the experts had failed to sufficiently explain the basis of their opinions linking cancer to asbestos exposure in talc products. Of note, J&J is involved in a separate lawsuit against one of these experts, Jacqueline Moline, regarding a 2019 study she co-authored. However, this particular study was not a focal point of the recent court decision. Reuters cited Jacqueline Moline, who testified in favour of plaintiffs in over 200 talc cancer cases, has argued that the lawsuit against her is an attempt to intimidate scientific experts and discourage them from testifying against J&J. Johnson & Johnson faces a staggering number of lawsuits, with over 38,000 claims alleging that their talc products, including Johnson's baby powder, may contain asbestos and have led to various cancers, including ovarian cancer and mesothelioma, a cancer type linked to asbestos exposure. The outcomes of these lawsuits have varied, with some major victories for plaintiffs, including a $2.1 billion judgment awarded to 22 women with ovarian cancer. While J&J has experienced reversals in some cases, such as a $117 million verdict in the same New Jersey appeals court and a $120 million verdict in New York, their most recent legal win may have significant implications as they continue to face talc-related litigation. This development follows J&J's unsuccessful attempts to move tens of thousands of talc-related claims into bankruptcy court, where they sought to resolve them through an $8.9 billion proposed settlement. The company is currently appealing the ruling that denied this move. The resumption of trials after a pause during the bankruptcy petition is expected to impact the trajectory of talc-related litigation. J&J has disclosed that the cost of talc-related verdicts, settlements, and legal fees has reached approximately $4.5 billion. Due to mounting lawsuits and concerns, the company made the decision to cease the sale of talc-based baby powder in favour of cornstarch-based alternatives. (With inputs from Reuters)

US court overturns $223.8 million verdict against J&J in talc cancer case

In a significant ruling, a US court has prohibited Johnson &amp; Johnson from using the bankruptcy of one of its subsidiaries as a means to coerce thousands of cancer patients into dropping their cases and accepting a settlement offer.

The appeals court made it unequivocal that a company must be genuinely facing "immediate, imminent, and clear" financial distress before seeking bankruptcy protection.

Following the court's decision, Johnson &amp; Johnson's stock experienced a decline of approximately two per cent in after-hours trade.

The lawsuits against Johnson &amp; Johnson stem from allegations that their baby powder and other talc products were contaminated with a harmful chemical known to cause cancer, resulting in multiple cancer victims taking legal action against the company.

Talc litigation saga: product withdrawal to bankruptcy

Since 2016, Johnson &amp; Johnson (J&amp;J) has grappled with a barrage of lawsuits regarding the use of talc in its products, especially after losing three cases that resulted in over $100 million in damages. The ongoing litigation led the company to pull all talc products from the market in 2020, citing poor sales.

Estimating that around 100,000 claims related to talc were either pending or expected to be filed against the firm, J&amp;J sought to safeguard its other products and offerings by creating a subsidiary named LTL Management in 2021. In a bid to avoid lawsuits, J&amp;J proposed that LTL Management, which had already filed for bankruptcy, pay a staggering $8.9 billion to resolve all talc-related claims. Subsequently, J&amp;J transferred its talc liabilities to LTL Management and sought bankruptcy protection for the subsidiary.

J&amp;J's legal manoeuvre aimed to settle the lawsuits through an $8.9 billion deal orchestrated via LTL Management. However, numerous plaintiffs rejected the offer, claiming that J&amp;J was attempting to coerce them into accepting the settlement by leveraging the threat of bankruptcy.

The United States Bankruptcy Court for the District of New Jersey, presided over by Judge Michael Kaplan, delivered a verdict on Friday, rejecting LTL's bankruptcy petition. Judge Kaplan cited that the lawsuits against the subsidiary did not demonstrate "imminent or immediate financial distress," leading to the rejection of the bankruptcy appeal.

Similarly, earlier this year, the United States Court of Appeals for the Third Circuit in Philadelphia had&nbsp;turned down the first bankruptcy filing for the same reason.

This marks the second time within six months that federal courts have denied J&amp;J's bankruptcy lawsuit for its subsidiary.&nbsp;

Legal Community responses&nbsp;

While Kaplan's rejection of J&amp;J's bankruptcy case signifies a setback for the company, he also expressed concern about the growing backlog of lawsuits in the court system, which may cause further delays for cancer victims awaiting resolution of their cases.

Moshe Maimon, a lawyer representing talc victims, commended the courts for their independence and integrity in preventing J&amp;J from evading legal scrutiny through bankruptcy.

On the other side, Andy Birchfield, one of the attorneys advocating for the dismissal of the second bankruptcy, celebrated the court's decision, stating that J&amp;J's attempt to force a settlement on cancer victims through the bankruptcy court had been thwarted.

Furthermore, in response, J&amp;J's worldwide vice president of litigation, Erik Haas, issued a statement affirming the company's commitment to pursue a resolution for the talc claims with the counsel representing approximately 60,000 claimants, as the bankruptcy court urged in its decision.

J&amp;J has consistently maintained that its bankruptcy approach is intended to ensure a fair and equitable settlement of damage claims. The firm firmly stands by its stance that its talc-based products are safe, even though they have been at the centre of numerous lawsuits.

(With inputs from agencies)

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In a significant ruling, a US court has prohibited Johnson & Johnson from using the bankruptcy of one of its subsidiaries as a means to coerce thousands of cancer patients into dropping their cases and accepting a settlement offer.

In a significant ruling, a US court has prohibited Johnson & Johnson from using the bankruptcy of one of its subsidiaries as a means to coerce thousands of cancer patients into dropping their cases and accepting a settlement offer. The appeals court made it unequivocal that a company must be genuinely facing "immediate, imminent, and clear" financial distress before seeking bankruptcy protection. Following the court's decision, Johnson & Johnson's stock experienced a decline of approximately two per cent in after-hours trade. The lawsuits against Johnson & Johnson stem from allegations that their baby powder and other talc products were contaminated with a harmful chemical known to cause cancer, resulting in multiple cancer victims taking legal action against the company. Talc litigation saga: product withdrawal to bankruptcy Since 2016, Johnson & Johnson (J&J) has grappled with a barrage of lawsuits regarding the use of talc in its products, especially after losing three cases that resulted in over $100 million in damages. The ongoing litigation led the company to pull all talc products from the market in 2020, citing poor sales. Estimating that around 100,000 claims related to talc were either pending or expected to be filed against the firm, J&J sought to safeguard its other products and offerings by creating a subsidiary named LTL Management in 2021. In a bid to avoid lawsuits, J&J proposed that LTL Management, which had already filed for bankruptcy, pay a staggering $8.9 billion to resolve all talc-related claims. Subsequently, J&J transferred its talc liabilities to LTL Management and sought bankruptcy protection for the subsidiary. J&J's legal manoeuvre aimed to settle the lawsuits through an $8.9 billion deal orchestrated via LTL Management. However, numerous plaintiffs rejected the offer, claiming that J&J was attempting to coerce them into accepting the settlement by leveraging the threat of bankruptcy. The United States Bankruptcy Court for the District of New Jersey, presided over by Judge Michael Kaplan, delivered a verdict on Friday, rejecting LTL's bankruptcy petition. Judge Kaplan cited that the lawsuits against the subsidiary did not demonstrate "imminent or immediate financial distress," leading to the rejection of the bankruptcy appeal. Similarly, earlier this year, the United States Court of Appeals for the Third Circuit in Philadelphia had turned down the first bankruptcy filing for the same reason. This marks the second time within six months that federal courts have denied J&J's bankruptcy lawsuit for its subsidiary. Legal Community responses While Kaplan's rejection of J&J's bankruptcy case signifies a setback for the company, he also expressed concern about the growing backlog of lawsuits in the court system, which may cause further delays for cancer victims awaiting resolution of their cases. Moshe Maimon, a lawyer representing talc victims, commended the courts for their independence and integrity in preventing J&J from evading legal scrutiny through bankruptcy. On the other side, Andy Birchfield, one of the attorneys advocating for the dismissal of the second bankruptcy, celebrated the court's decision, stating that J&J's attempt to force a settlement on cancer victims through the bankruptcy court had been thwarted. Furthermore, in response, J&J's worldwide vice president of litigation, Erik Haas, issued a statement affirming the company's commitment to pursue a resolution for the talc claims with the counsel representing approximately 60,000 claimants, as the bankruptcy court urged in its decision. J&J has consistently maintained that its bankruptcy approach is intended to ensure a fair and equitable settlement of damage claims. The firm firmly stands by its stance that its talc-based products are safe, even though they have been at the centre of numerous lawsuits. (With inputs from agencies) WATCH WION LIVE HERE

US court rejects J&J's bankruptcy strategy for lawsuit settlements

A Johnson &amp; Johnson (J&amp;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&amp;J subsidiary in a hearing in Trenton, New Jersey, will argue that the so-called "automatic stay" under bankruptcy law should also protect J&amp;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.

Also read |&nbsp;<a href="https://www.wionews.com/world/johnson-johnson-to-pay-89-billion-to-settle-lawsuits-over-cancer-causing-talc-579243">Johnson &amp; Johnson to pay $8.9 billion to settle lawsuits over 'cancer-causing' talc</a>

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.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/elon-musks-direct-deal-propels-ultra-rich-fortune-for-south-korean-company-583504">Elon Musk's direct deal propels 'ultra rich' fortune for South Korean company</a>

The plaintiffs are alleging that J&amp;J's baby powder and other talc products cause cancer. J&amp;J has offered $8.9 billion&nbsp;to settle the claims but has not provided details on how much each claimant would receive from the deal. LTL argues that litigation against J&amp;J would imperil its efforts to negotiate a comprehensive settlement of all current and future talc claims in its bankruptcy.&nbsp;

(With inputs from agencies)

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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.

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. Also read | Johnson & Johnson to pay $8.9 billion to settle lawsuits over 'cancer-causing' talc 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. Also read | Elon Musk's direct deal propels 'ultra rich' fortune for South Korean company The plaintiffs are alleging that J&J's baby powder and other talc products cause cancer. J&J has offered $8.9 billion to 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) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Johnson & Johnson unit seeks to halt 38,000 lawsuits over its alleged 'cancer causing' talc

US pharma giant Johnson & Johnson has proposed an $8.9 bn settlement to resolve several lawsuits. The lawsuits allege that Johnson and Johnson's talcum powder products cause cancer. For several years now, J&J has been facing lawsuits of its talcum powder containing traces of asbestos.

Johnson & Johnson offers $8.9 bn talcum powder settlement | World Business News

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US court overturns $223.8 million verdict against J&J in talc cancer case

US court rejects J&J's bankruptcy strategy for lawsuit settlements

Johnson & Johnson unit seeks to halt 38,000 lawsuits over its alleged 'cancer causing' talc

Johnson & Johnson offers $8.9 bn talcum powder settlement | World Business News