A U.S. bankruptcy court judge denied that Johnson & Johnson’s settlement plan was associated with baby powder containing talc, which has setbacks in the company’s efforts to resolve the matter.
This is J&J’s third bankruptcy case because it has something to do with baby powder issues.
J&J subsidiary Red River Talc LLC is seeking to confirm the proposed pre-packaged Chapter 11 bankruptcy plan that, if approved, would be one of the largest large-scale infringement settlements in history. Red River and J&J propose to settle claims for ovarian cancer and other gynecological cancer lawsuits based on talc-related products for $9 billion.
However, the Houston branch’s Christopher Lopez court in the U.S. Bankruptcy Court in the Southern U.S. District said in court documents that J&J used the wrong voter bidding process when dealing with personal injury claimants.
J&J said in a statement that it would not appeal, but would return “litigation and defeat these priceless talc claims” to the civil law regime. It will also reverse about $7 billion in previous reserves.
The company said it has resolved 95% of mesothelioma lawsuits filed, summarizing all state consumer protection claims, as well as all talc disputes.
Last year’s subsidiary J&J Suggested As part of the settlement in the United States, about $6.48 billion will be paid over 25 years to introduce allegations of ovarian cancer caused by its baby powder containing talc.
The lawsuit filed against J&J alleges that its talc powder allows users to develop ovarian cancer by using feminine hygiene or mesothelioma, a cancer that hits the lungs and other organs.
These claims resulted in a decline in sales of J&J’s baby powder sales, prompting the company to stop selling its talc-based products in 2020. In 2022J&J announced plans to stop selling products worldwide.
J&J said at the time that the restructuring plan of the subsidiary was significantly different from the previously announced restructuring. The company said the plan will resolve 99.75% of all pending talc lawsuits, and its branches in the U.S.
At the time, J&J said the remaining personal injury lawsuits related to mesothelioma would be resolved outside the plan.
J&J’s shares fell more than 3% before opening on Tuesday.
