Posted on Sep 19, 2022
J&J tried to block lawsuits from 40,000 cancer patients. A court wants answers
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https://www.npr.org/2022/09/19/ [login to see] /johnson-baby-powder-bankruptcy-lawsuits
An attorney for Johnson and Johnson faced probing questions Monday over the corporation's use of a controversial bankruptcy maneuver that has frozen tens of thousands of lawsuits linked to Johnson's baby powder.
During the hearing, members of a three-judge panel of the United States Court of Appeals for the Third Circuit in Philadelphia asked whether J&J had used the legal strategy to gain "a litigation advantage" over roughly 40,000 cancer patients who have sued the company.
The cases were filed mostly by women. They claim Johnson's iconic talc baby powder was contaminated with asbestos, which caused their mesothelioma or ovarian cancers.
J&J, which announced last month it would suspend all talc baby powder sales worldwide, has denied any wrongdoing.
Attorney Neal Katyal, representing the company, responded by arguing that the bankruptcy maneuver — known as the "Texas two-step" — would benefit victims by producing a faster settlement, possibly worth as much as $61 billion.
Katyal acknowledged criticism that a "big company that has all these profits is somehow trying to evade liability."
An attorney for Johnson and Johnson faced probing questions Monday over the corporation's use of a controversial bankruptcy maneuver that has frozen tens of thousands of lawsuits linked to Johnson's baby powder.
During the hearing, members of a three-judge panel of the United States Court of Appeals for the Third Circuit in Philadelphia asked whether J&J had used the legal strategy to gain "a litigation advantage" over roughly 40,000 cancer patients who have sued the company.
The cases were filed mostly by women. They claim Johnson's iconic talc baby powder was contaminated with asbestos, which caused their mesothelioma or ovarian cancers.
J&J, which announced last month it would suspend all talc baby powder sales worldwide, has denied any wrongdoing.
Attorney Neal Katyal, representing the company, responded by arguing that the bankruptcy maneuver — known as the "Texas two-step" — would benefit victims by producing a faster settlement, possibly worth as much as $61 billion.
Katyal acknowledged criticism that a "big company that has all these profits is somehow trying to evade liability."
J&J tried to block lawsuits from 40,000 cancer patients. A court wants answers
Posted from npr.org
Johnson & Johnson
Lawsuit
Cancer
Medical
Health
Posted >1 y ago
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PO1 William "Chip" Nagel
..."If Johnson and Johnson can get away with this bankruptcy, what's to stop any other company in America from doing the same thing?" asked Sean Janda, an attorney representing the U..S Trustee, a division of DOJ that oversees bankruptcy cases.
J&J's strategy has also sparked criticism from some members of Congress as well as public outrage.
In this photo illustration, a bottle of Johnson & Johnson baby powder is displayed on a table. J&J pulled its iconic Johnson's baby powder off the shelves in the U.S. in 2020.
In this photo illustration, a bottle of Johnson & Johnson baby powder is displayed on a table. J&J pulled its iconic Johnson's baby powder off the shelves in the U.S. in 2020. Image: Justin Sullivan/Getty Images
Speaking late last year, Hanna Wilt who was sick with mesothelioma voiced fury over the delay in her baby powder lawsuit against the company.
"What I see is who can play the game best," Wilt told NPR. "Big corporations trying to work the system in a way they don't have to take full responsibility is not something new."
Wilt died in February of this year at age 27.
It's unclear how quickly the Third Circuit will rule, though judges tend to move quickly in bankruptcy-related cases. Legal experts have suggested that regardless of the outcome, an appeal will likely be filed to the US Supreme Court."
..."If Johnson and Johnson can get away with this bankruptcy, what's to stop any other company in America from doing the same thing?" asked Sean Janda, an attorney representing the U..S Trustee, a division of DOJ that oversees bankruptcy cases.
J&J's strategy has also sparked criticism from some members of Congress as well as public outrage.
In this photo illustration, a bottle of Johnson & Johnson baby powder is displayed on a table. J&J pulled its iconic Johnson's baby powder off the shelves in the U.S. in 2020.
In this photo illustration, a bottle of Johnson & Johnson baby powder is displayed on a table. J&J pulled its iconic Johnson's baby powder off the shelves in the U.S. in 2020. Image: Justin Sullivan/Getty Images
Speaking late last year, Hanna Wilt who was sick with mesothelioma voiced fury over the delay in her baby powder lawsuit against the company.
"What I see is who can play the game best," Wilt told NPR. "Big corporations trying to work the system in a way they don't have to take full responsibility is not something new."
Wilt died in February of this year at age 27.
It's unclear how quickly the Third Circuit will rule, though judges tend to move quickly in bankruptcy-related cases. Legal experts have suggested that regardless of the outcome, an appeal will likely be filed to the US Supreme Court."
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PO1 William "Chip" Nagel good morning Brother William, solid-read/share. Thanks for sharing good buddy, keep'em coming like the mighty Niagra Falls, Waterfalls Brother!!!
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