Johnson & Johnson are losing back to court to pay talk cases

On Monday, a federal insolvency judge in Houston rejected Johnson & Johnson’s application to approve an agreement of over 9 billion US dollars with tens of thousands of people who sue the company due to claims that its valley clumsy production caused cancer.

The proposal would have solved almost all current and future claims that the Talk products of the company contained asbestos and caused cancer. Like the two previous efforts – in 2021 and 2023 – the deal tried to use an element of the insolvency system to pay the claims.

Johnson & Johnson claim that his products would not contain asbestos and that there was no proven connection between his products and cancer, the judge Christopher Lopez wrote in his decision. Johnson & Johnson has long denied these claims, but has adjusted to the talk-based baby powder worldwide in recent years.

Over 90,000 claims against Johnson & Johnson and other parties are still pending, far too many to process the dishes individually.

The company’s attempted comparison and the lawyers for the plaintiffs who received the claims was rejected by an insolvency from the Ministry of Justice and the lawyers from other plaintiffs, said the judge.

In an explanation on Monday, Johnson & Johnson said: “Unfortunately, the court approved a few law firms with financially conflicting motifs that admitted that they did not restore a cent for their mandas in a decade of the legal dispute so that they did not restore the overwhelming wish of the applicants.”

“Instead of pursuing a lengthy complaint,” said the company, “it will” return to the tort system in order to contest and defeat this merit talk. “It added that it would reverse about 7 billion US dollars to remedy bankruptcy.

Johnson & Johnson, who produces pharmaceuticals and consumer goods, argued for years that his baby powder was safe. Internal memos showed that it was feared in the company that the talk could be contaminated with asbestos, a well -known carcinogen.

Since 2021, critics have claimed that Johnson & Johnson has tried to use unfair advantages of protective measures before the insolvency court. This year a subsidiary, LTL management, created it and stormed the baby powder claims. A day later, LTL explained bankruptcy.

At the time, Johnson & Johnson announced that the bankruptcy registration in New Jersey should “solve the complaints” in a way that does justice to all parties “. The company would provide funds for all amounts that an insolvency court decided that LTL was owed.

The plaintiffs’ lawyers mocked the creation of LTL and their almost immediate bankruptcy as an example of “The Texas Two-Step” an attempt to protect a solvent company with an insolvent. In January 2023, a federal judge rejected LTL’s bankruptcy registration.

Three months later, the company announced that it had completed a deal for paying 8.9 billion US dollars over 25 years to tens of thousands of applicants, which ended the legal dispute, which until then lasted more than a decade. The plaintiffs’ lawyers described the settlement in the case as “significant victory for the tens of thousands of women who suffer from gynecological cancer caused by J. & J.’s talk-based products”.

The US Court of Appeal for the third circle rejected the agreement twice. Johnson & Johnson tried it again, this time in Texas, and judge Lopez has now rejected it. He decided that the plaintiffs’ lawyers had not adequately complied with the approval of sufficient applicants. He also found “uniformities, including the inappropriate short voting time for thousands of creditors,” he wrote.

“While the court’s decision is not easy,” he said, “it’s the right one.”