Johnson & Johnson is one of the wealthiest companies in the world, but they are trying to escape from compensating the injuries and deaths caused by their baby powder. According to Bloomberg Businessweek, their stock market value is around $430 billion. Why are they filing for bankruptcy then? The answer is simple; they do not want to pay the thousands of lawsuits that have been filed due to their talc baby powder causing ovarian cancer and asbestos-related mesothelioma.
This maneuver by Johnson & Johnson, which has been scrutinized by a U.S. Senate Judiciary Committee, consisted of creating a new company called LTL and moving all of their talc powder liabilities into that company. The Committee and many in the private sector have called for Johnson & Johnson to drop the bankruptcy as they have more than adequate assets to pay claims, which are estimated to be in the range of $25 billion.
LTL filed for Bankruptcy in October of 2021 in a Charlotte, N.C federal court. According to bankruptcy expert, Lindsey Simon by moving all of their liabilities into the new company Johnson & Johnson has set itself free and can file for bankruptcy due to the vast number of lawsuits LTL now has.
This move by Johnson & Johnson has sparked rage all over. They continue their efforts to avoid liability for the ovarian cancer and mesothelioma injuries they have caused. It is apparent that they plan to fight hard not to pay, but advocates and lawyers all over the country keep fighting back.
Now that LTL holds all the asbestos-related cases, the settlements victims stand to recover are much smaller.
Tens of thousands of women got ovarian cancer due to their ambitious and immoral nature. For years J&J knew that their products were laced with asbestos, yet they kept the products on the market for decades, not caring for any damage just for money.
J&J continues to defend its maneuver calling it “an efficient and equitable manner” of resolving claims. In a statement, the new company LTL has said that J&J provided them with 2 billion dollars to payout talc powder claims. Lawyers continue their fight against J&J to hold them accountable for decades of lies and greed. This is not the first time J&J has attempted to dish out liability. Unfortunately, it is also not the first time they have made defective and dangerous products.
What’s the next step? Wait and see if the court approves their bankruptcy claimHave you or someone close to you been harmed by a baby powder? We at Rheingold Giuffra Ruffo & Plotkin LLP are currently helping lead the talc litigation throughout the country. Our firm offers you the advice and communication you require to find comfort during this challenging time. Please contact us today online or by telephone at (888) 260-0473 to speak with an experienced nationwide hernia mesh recall lawyer. Our law office is conveniently located in Midtown Manhattan at 551 5th Ave.