Talc MDL Leadership Applauds Third Circuit Decision Dismissing J&J Bankruptcy
February 1, 2023
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PHILADELPHIA — Members of the Plaintiffs’ Steering Committee in the Johnson & Johnson Talcum Powder-Ovarian Cancer MDL view the Third Circuit Court of Appeal’s decision dismissing the LTL bankruptcy as an important victory in the fight on behalf of thousands of women and their families who have suffered or died of ovarian cancer due to the use of J&J’s talc-based products.

Co-Lead Counsel Michell Parfitt of Ashcraft & Gerel and Leigh O’Dell of Beasley Allen believe the court’s ruling will allow hundreds of claims to proceed in federal court, cases that were wrongly sidelined and delayed due to J&J’s fraudulent bankruptcy filing. In its ruling, the Third Circuit found that the bankruptcy of J&J’s shell subsidiary, LTL, was not filed in good faith, that LTL was not in financial distress deserving bankruptcy protection, and that the bankruptcy petition should be dismissed.

“We are grateful that J&J’s efforts to misuse and abuse the bankruptcy process have been rejected,” said Ms. Parfitt.  “This strategy by J&J was nothing more than a maneuver to obtain a litigation advantage and impose needless delay and unfair settlement values on victims.”

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Since the bankruptcy filing, hundreds of victims have died without getting their day in court.  As the Third Circuit acknowledged, its decision will remove the litigation shield of bankruptcy and allow plaintiffs to “prove to a jury of their peers” their claims.  Victims going forward will have the opportunity to present evidence to a jury that J&J knowingly exposed women to asbestos, talc fibers, and other known carcinogens through its talc products, all of which can cause ovarian cancer.

“We are privileged to represent thousands of women who stood up to one of the most powerful corporations in the world,” said Ms. O’Dell.  “We are grateful for their courage. We will remain resolute and do all we can to protect their rights and achieve a fair and efficient resolution on their behalf.”

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The opinion dismantles the federal bankruptcy court rulings supporting the injunction and will allow plaintiffs to move forward with lawsuits alleging that the company knew for years that its Johnson’s Baby Powder and Shower to Shower products were potentially contaminated with carcinogenic asbestos. Evidence produced during years of trials shows the company repeatedly denied or covered up the scientific evidence of the association of the product to ovarian cancer.

 

Media Contact:

Barry Pound
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