J&J Can’t Use Bankruptcy to Resolve Talc-Injury Lawsuits, Appeals Court Rules
Wall Street JournalNov 22, 2022
Johnson & Johnson (J&J) has agreed to pay $8.9B, far larger than its original offer of $2B, to settle tens of thousands of lawsuits alleging that talc in its famous baby powder product caused cancer.
J&J had its subsidiary, LTL Management, file for bankruptcy to cover the settlement for a second time Tuesday and has commitments from 60k claimants to support the move. Previously, an appeals court said in January that LTL couldn't file for bankruptcy because it wasn’t in financial distress.
Big Pharma continues to get away with murder, while the FDA allows companies to conduct their own clinical trials free from proper oversight. When they inevitably create toxic products, the companies get slapped with an easy-to-pay fine, while no executives go to jail or even pay individual penalties. Unless there’s a crackdown, this cycle will continue.
J&J, which isn't at fault, continues to be committed to producing the safest and most effective products. It only agreed to the settlement to avoid wasting time and money in a drawn-out court battle that would’ve resulted in nothing for the plaintiffs. Now J&J can return to the business of protecting people's health.