Johnson & Johnson (J&J), a pharmaceutical giant, faces tens of thousands of mesothelioma and ovarian cancer lawsuits. Plaintiffs claim the company's talcum powder products are responsible for their illnesses. J&J's talcum powder products were contaminated with asbestos, a dangerous mineral substance, which, when disturbed, releases tiny fibers into the air that can be inhaled or ingested. Over time, these fibers can become lodged in the lungs or other tissues, leading to serious health conditions like mesothelioma and ovarian cancer. Plaintiffs claim that J&J knew about the dangers their products posed but failed to warn consumers. Already, the pharmaceutical giant has been ordered to pay billions in compensation. To get out of compensating victims, J&J has repeatedly tried to file for bankruptcy. However, recently, the company's bankruptcy filing was denied again. In a recent decision, the Third Circuit Court upheld a bankruptcy court's decision to dismiss J&J's bankruptcy case due to lack of good faith.
Johnson & Johnson's talcum powder products were a favorite of many. Unfortunately, the products were contaminated with asbestos, which consumers were exposed to, leading to serious illnesses like mesothelioma and ovarian cancer. Since consumers discovered that J&J's talcum powder contained asbestos, tens of thousands of personal injury lawsuits have been filed against the company. Many of these lawsuits have resulted in multi-million dollar verdicts against J&J. In an attempt to evade liability, J&J pursued a controversial legal strategy called Texas two-step.
First, Johnson &Johnson created a subsidiary, LTL Management. This company was designed to assume J&J's asbestos-related liabilities. Then, J&J had the subsidiary file for bankruptcy. In response to the company's initial bankruptcy filing, the mesothelioma and ovarian cancer victims' legal representatives moved to dismiss the case for lack of good faith. The bankruptcy court denied this motion. However, the Third Circuit of Appeals reversed the trial court's decision. The appellate court emphasized that bankruptcy protections are only available to genuinely financially distressed companies. J&J then reduced the money it provided LTL Management and refiled for bankruptcy.
After receiving the second bankruptcy filing, the bankruptcy court referred to the appellate court's prior ruling. The bankruptcy court found that the company still did not meet the threshold for financial distress. In an attempt to reverse this decision, LTL Management cited its expected liabilities and reduced funding. However, the court rejected the argument. The court found that the company had not filed for bankruptcy in good faith and the case would not fulfill a legitimate bankruptcy purpose.
For individuals who have been diagnosed with illnesses after using J&J's talcum powder products, the decision to deny the company's bankruptcy filing offers some reassurance. This decision allows victims to continue pursuing justice and compensation without the company hiding behind bankruptcy protections.
Arizona Mesothelioma Lawyers
If you or a loved one were diagnosed with mesothelioma, contact our office to speak to one of our experienced Arizona mesothelioma attorneys about your situation. Our office can help investigate your case and determine if compensation can be sought from negligent parties to help pay for your medical treatment.
