Johnson & Johnson Still Determined to Halt Baby Powder Lawsuits

Concept photo: J&J intent on halting baby powder lawsuits

Johnson & Johnson remains determined to halt the baby powder lawsuits it is facing using bankruptcy. On Friday, November 5th, the company ended a two-day trial in Charlotte, North Carolina. The trial was held to decide whether to temporarily halt 38,000 lawsuits filed against Johnson & Johnson and about 250 retailers and insurance companies. 

The presiding judge announced that the ruling would be given on the next court date when Johnson & Johnson’s bankrupt unit returned to court. Stopping the lawsuit has become the primary strategy for J&J since they executed the legal strategy known as the “Texas Two Step” in October. The company hopes to pay at least $2 billion to end all current and future claims related to the talcum Baby Powder and all talc-based products. 

Johnson & Johnson, using the Texas Two Step strategy, created a unit in Texas to hold all the lawsuits and then transferred the unit to North Carolina before placing it in bankruptcy. The Big Pharma company decided to use this strategy earlier this year to deal with the baby powder lawsuits in one place. This way, they do away with spending millions every month for decades while the lawsuits continue around the country. 

While the move may favor Johnson & Johnson, the alleged victims see it as a move to stop them from having their day in court. The lawsuit against J&J alleges that the talcum powder causes ovarian cancer. Since the lawsuit commenced, the company has paid millions of dollars in compensation. 

However, since the effects of asbestos take time to manifest, the lawsuit against Johnson & Johnson would likely be ongoing. This means several victims can still file a lawsuit unless the bankruptcy move works. 

Victims who wish to join the lawsuits can contact our mass tort lawyers at Dalimonte Rueb Stoller, LLP.

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