Critical Mass by Law.com's Amanda Bronstad: Judge Says Bankruptcy Is Best for Talc Lawsuits. Opioid Companies Move Forward With $26B Deal.
March 02, 2022 at 12:17 PM
6 minute read
Critical Mass
Welcome to Law.com Class Actions: Critical Mass, a weekly briefing for class action and mass tort attorneys. Why did a judge keep thousands of talcum powder lawsuits in bankruptcy? About 90% of the nation's cities and counties have agreed to a global opioid settlement. Find out who is representing the carriers sued over a 2020 cargo ship disaster.
I'm Amanda Bronstad. Feel free to reach out to me with your input. My email is [email protected], or follow me on Twitter: @abronstadlaw.
Johnson & Johnson's baby powder Judge: Bankruptcy Alternatives Are Worse for Talc Claims
Nearly 40,000 lawsuits filed over Johnson & Johnson's talcum powder will remain in bankruptcy after a judge on Feb. 25 refused to dismiss the Chapter 11 case.
Lawyers for individuals with ovarian cancer and mesothelioma plan to appeal the ruling in the bankruptcy of LTL Management, a Johnson & Johnson subsidiary created through a "Texas two-step" merger to absorb mounting talc liabilities. Claimants had argued that LTL filed the case in bad faith – there was no financial distress, for example, and the bankruptcy would give Johnson & Johnson a tactical litigation advantage. But New Jersey Chief Bankruptcy Judge Michael Kaplan found no improprieties and agreed with Johnson & Johnson that an estimated billions of dollars in talc liabilities constituted potential financial distress.
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