Trial Over J&J Ovarian Cancer Settlement Likely Coming in Early 2025
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The success of Johnson & Johnson’s $8 billion talc settlement, which aims to resolve thousands of pending talcum powder lawsuits against the company, will face a major hurdle early next year.
According to Law.com, the bankruptcy case that’s necessary to complete the settlement will likely have a trial in January or February 2025. The judge plans to address pending motions to dismiss the case, along with claims that plaintiff support has been manipulated.
Johnson & Johnson’s subsidiary Red River Talc filed for Chapter 11 in September as part of a Texas two-step bankruptcy maneuver, where a subsidiary takes on the main company’s lawsuit liabilities. The success of that bankruptcy is a necessary step to complete the pending settlement. J&J also announced at the time that its settlement offer had the support of 83% of affected plaintiffs.
But opponents of the settlement have disputed that figure. According to Bloomberg, a lead attorney for the holdouts of the settlement has claimed that the vote was rigged. J&J has denied these claims.
Now that issue, as well as motions that have been filed to dismiss the bankruptcy, will likely be dealt with via trial in just a few months. The trial will play a key role in determining the future of thousands of pending talcum powder lawsuits.
J&J Talc Settlement Continues to Face Pushback
J&J’s latest settlement attempt has faced significant pushback since it was first filed.
On top of claims that the number of plaintiffs supporting the settlement is inaccurate, J&J has also come under fire for its bankruptcy maneuver.
The company is employing a Texas two-step strategy, where a subsidiary is formed to take on the primary company’s liabilities and then files for Chapter 11 in its place. The Department of Justice’s bankruptcy watchdog filed a motion to dismiss the case last week over this strategy, which was the method used in past failed settlement attempts.
“For the third time in as many years, the Johnson & Johnson Company … seeks to use the bankruptcy process to immunize itself from billions of dollars of personal injury liability without actually subjecting itself to bankruptcy,” U.S. Trustee Kevin Epstein said in the filing.
The outcome of that motion will be determined as part of the 2025 trial, setting the stage for a significant showdown to decide the future of the settlement.
J&J Hoping to Settle Thousands of Ovarian Cancer Lawsuits
If approved, J&J’s $8 billion settlement will resolve thousands of pending lawsuits against the company related to claims that its talc-based baby powder is tied to ovarian cancer.
Litigation has been significant, with more than 58,000 lawsuits currently pending in multidistrict litigation.
The settlement could bring those lawsuits to an end, but would not stop all litigation tied to J&J baby powder.
Lawsuits have also claimed that the company’s talc powder, which was discontinued in the U.S. in 2020, is responsible for the development of mesothelioma. These claims are not covered in the proposed settlement but have seen some success standing on their own in state court.
In August, a South Carolina man was awarded $63.4 million by a jury after claiming that J&J baby powder he used in place of deodorant for years caused his mesothelioma.