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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Gurugram: Four college students held for night-time thefts of car tyres, rims
Gurugram (PTI): The Gurugram Police has busted an alleged tyre-theft gang that was active in the city for the past two months, police said on Saturday.
Four students from different colleges were arrested for allegedly stealing tyres and rims of vehicles parked outside houses and hotels during the night, police said, adding that the accused squandered the proceeds of theft on lavish escapades at clubs.
According to an official, the accused have confessed to 14 cases of tyre and rim thefts, and all four have been taken on a two-day police remand after being produced in court.
The accused were identified as Rishikesh (23), a chartered accountancy student from sector-39 Jharsa; Arjun (22), a native of Siwana village in Jhajjar studying BA (LLB) at Baba Mastnath University, Rohtak; Piyush Rana (23), resident of Jodhpur village in Palwal and a student of B Com in Gurugram University; and Tushar Kumar (22), a native of Bihar's Munger and a B Com student of DSD college, Gurugram.
According to the police, a crime branch team nabbed the gang on Friday.
A senior investigating officer said, during interrogation, the accused revealed that they would go out at night in a blue Maruti Suzuki Fronx car belonging to Arjun.
They would park the car near the target vehicle and, using a jack and other tools, removed the tyres, including the rims. Then, they would leave the vehicle on bricks and load the stolen tyres on to the Fronx before fleeing, the officer added.
The vehicle used in the crimes will be impounded soon, a Gurugram Police spokesperson said.
"During interrogation, the accused revealed that they are childhood friends and have studied together. All of them are fond of parties and clubs, and began stealing when they couldn't get pocket money from home. They had been actively involved in thefts for the past two months," he added.
