Johnson & Johnson’s $8.2 billion talc bankruptcy deal faces legal challenges in January trial
Johnson & Johnson’s attempt to resolve thousands of lawsuits over claims that its talc-based baby powder causes cancer now rests on a high-stakes trial set for January 2024. The case will determine whether the company’s $8.2 billion settlement plan, which J&J hopes will fast-track resolution through bankruptcy, will be approved by the court.
J&J has faced 15 years of litigation regarding allegations that its baby powder contained asbestos, causing ovarian cancer and other health issues—a claim the company denies. Despite previous failures to settle the claims through bankruptcy in New Jersey, J&J has now moved proceedings to Texas, hoping for a more favorable outcome.
While J&J announced that over 75% of claimants had voted in favor of the new deal, Andy Birchfield, an attorney representing a group of plaintiffs, has accused the company of manipulating the vote. He claims that EPIQ, the consulting firm managing the vote, allowed another attorney, Allen Smith, to improperly switch 11,434 votes from “no” to “yes.” Birchfield is demanding the votes be reversed, accusing J&J of rigging the bankruptcy process to minimize legitimate claims.
J&J’s Erik Haas, head of global litigation, defended the process, insisting the vote was conducted according to rules and reflected the claimants' desire for a quick resolution. Haas emphasized that the proposed settlement—one of the largest in mass tort history—offers fair compensation and will end years of litigation.
The controversy over the vote reflects deeper tensions between plaintiffs' attorneys. Smith, who once partnered with Birchfield on these cases, switched his clients' votes to favor the deal, citing the need to end protracted litigation. Smith, under financial pressure due to $240 million in litigation debt, argued that the revised offer provided fair compensation for clients. Birchfield, however, accused Smith of betraying former clients for financial gain and filed a lawsuit against him.
The outcome of these legal battles will shape whether EPIQ remains responsible for overseeing the bankruptcy claims process, which could yield millions in fees.
J&J is betting on the enhanced settlement and bankruptcy process to handle over 60,000 claims, arguing that it’s the only way to avoid decades of costly litigation. If approved, the bankruptcy would bind all plaintiffs, including those who opposed the deal, and establish a trust to handle future cancer claims.
However, critics warn that moving the case to Texas—considered more business-friendly—raises concerns about fairness. Judge Christopher Lopez will need to decide whether the contested votes were valid and whether the bankruptcy should proceed in Texas, especially after two previous bankruptcy attempts were blocked in New Jersey. Lopez has also halted all talc trials while the bankruptcy plan is under review.
If the bankruptcy plan succeeds, it would settle most current talc-related lawsuits and limit J&J's liability for future claims. However, an appeal is expected, potentially delaying final resolution. Larry Biegelsen, an analyst at Wells Fargo, noted that year-end resolution is possible if the court approves the deal, though the process will likely remain contested.
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MP HC sets up judicial commission to probe water contamination in Indore
Indore (PTI): The Indore bench of Madhya Pradesh High Court on Tuesday set up a commission of inquiry comprising a former HC judge to probe the issue of water contamination in city's Bhagirathpura, saying the matter requires probe by an independent, credible authority and "urgent judicial scrutiny".
It also directed the commission to submit an interim report after four weeks from the date of commencement of proceedings.
A division bench of Justices Vijay Kumar Shukla and Alok Awasthi constituted the commission while hearing several public interest litigations (PILs) filed simultaneously regarding the deaths of several people in Bhagirathpura due to the consumption of contaminated water.
The HC reserved the order after hearing all the parties during the day, and released it late at night.
The state government on Tuesday told the HC that the deaths of 16 people in Indore's Bhagirathpura area was possibly linked to a month-long outbreak of vomiting and diarrhoea caused by contaminated drinking water.
The government presented an audit report of 23 deaths from the current gastroenteritis epidemic in Bhagirathpura before the bench, suggesting that 16 of these fatalities may have been linked to the outbreak of vomiting and diarrhoea caused by contaminated drinking water.
The report, prepared by a committee of five experts from the city's Government Mahatma Gandhi Memorial Medical College, stated that the deaths of four people in Bhagirathpura were unrelated to the outbreak, while no conclusion could be reached regarding the cause of death of three other people in the area.
During the hearing, the high court sought to know from the state government the scientific basis behind its report.
The division bench also expressed surprise at the state government's use of the term "verbal autopsy" in relation to the report, sarcastically stating that it had heard the term for the first time.
The HC expressed concern over the Bhagirathpura case, stating that the situation was "alarming," and noted that cases of people falling ill due to contaminated drinking water have also been reported in Mhow, near Indore.
In its order, the HC said the serious issue concerning contamination of the drinking water supply in Bhagirathpura area allegedly resulted in widespread health hazards to residents, including children and elderly persons.
According to the petitioners and media reports, death toll is about 30 till today, but the report depicts only 16 without any basis or record, it said.
It is averred that sewage mixing, leakage in the pipeline, and failure of civic authorities to maintain potable water standards have led to the outbreak of water-borne diseases. Photographs, medical reports, and complaints submitted to the authorities prima facie indicate a matter requiring urgent judicial scrutiny, the HC said.
"Considering the gravity of the allegation and affecting the right to life under Article 21 of the Constitution of India and the need for an independent fact-finding exercise, the Court is of the opinion that the matter requires investigation by an independent, credible authority," it said.
"Accordingly, we appoint Justice Sushil Kumar Gupta, former judge of the Madhya Pradesh High Court, a one-man commission of inquiry into the issues relating to water contamination in Bhagirathpura, Indore, and its impact on other areas of the city," the HC added.
As per the order, the commission shall inquire into and submit a report on the cause of contamination -- whether the drinking water supplied to Bhagirathpura was contaminated; and the source and nature of contamination (sewage ingress, industrial discharge, pipeline damage etc).
The panel will also probe the number of actual deaths of affected residents on account of contaminated water; find out the nature of disease reported and adequacy of medical response and preventive measures; suggest immediate steps required to ensure safe drinking water as well as long-term infrastructural and monitoring reforms.
It will also identify and fix responsibility upon the officers and officials found prima facie responsible for the Bhagirathpura water contamination incident, and suggest guidelines for compensation to affected residents, particularly vulnerable sections.
The commission shall have powers of a civil court for the purpose of summoning officials and witnesses; calling up records from the government department, hospitals, laboratories and civic bodies; ordering water quality testing through accredited laboratories; conducting spot inspections.
All state authorities involving district administration, Indore Municipal Corporation, public health engineering department and Madhya Pradesh Pollution Control Board shall extend full co-operation and provide records as sought by the commission, it said.
The state government shall provide office space, staff, and logistical support to the commission, it said.
During the hearing in the day, the state government also presented a status report to the court in this matter.
According to reports, a total of 454 patients were admitted to local hospitals during the vomiting and diarrhea outbreak, of whom 441 have been discharged after treatment, and 11 are currently hospitalised.
According to officials, due to a leak in the municipal drinking water pipeline in Bhagirathpura, sewage from a toilet was also mixed in the water.
