Appeals Court Denies J&J Talc Bankruptcy Strategy

J&J talc bottle laying down surrounded by spilled talc with red word "Bankruptcy" printed over the topOnderLaw Vows to Continue Fight for Talc Victims

Johnson & Johnson’s latest attempt to shield itself from responsibility for its dangerous talc products was thwarted as the Third U.S. Circuit Court of Appeals in Philadelphia denied their request for another hearing to reinstate the Chapter 11 bankruptcy case for LTL Management LLC, a subsidiary of J&J. Our clients, who have suffered due to J&J’s negligence, will not be deterred in their pursuit of justice.

J&J established LTL in 2021 to file for Chapter 11 and shift numerous talc-related ovarian cancer and mesothelioma lawsuits to bankruptcy court. However, the appeals court has made it clear that this tactic, commonly known as the Texas Two-Step, is not a viable option for J&J. Now, the only remaining path for J&J to revive its talc subsidiary’s Chapter 11 case is through the U.S. Supreme Court, which only accepts a small fraction of petitions.

J&J has requested a new stay for trials until the Supreme Court makes a decision whether or not to hear their appeal. We are hopeful that a stay will not be granted, and that we can return to state and federal courtrooms with renewed strength.

Our OnderLaw team will continue to hold J&J accountable for the lives they have destroyed while profiting from talc. J&J’s insistence that its talc products are safe is contradicted by the roughly $4.5 billion they have spent on defending and settling talc-related claims in recent years.

J&J’s decision to discontinue talc-based baby powder sales in the U.S. and Canada in 2020 and announce that it would pull all talc products from store shelves across the globe by 2023 further underscores the growing concerns about the safety of their products.

As J&J tries a final punt to stall talc-related litigation, our team remains committed to advocating for our clients and their right to seek justice. The Third Circuit’s unanimous ruling is another victory for the thousands of victims of J&J’s negligence and greed. We will continue our fight, resuming tort lawsuits in state courts and ensuring that J&J is held accountable for their actions.

The January ruling by the three-judge panel on the Third Circuit made it clear that LTL was not eligible for bankruptcy, as J&J had agreed to cover all expenses related to the Chapter 11 case and potential settlements with injury claimants. It is evident that J&J is attempting to manipulate the bankruptcy system to avoid responsibility for their actions, and our faith in the judicial process is renewed by this recent decision.

We will continue to keep our clients updated on additional developments as they arise.