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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BJP trying to add illegal voters from outside in Bengal electoral rolls: Mamata
Kolkata (PTI): West Bengal Chief Minister Mamata Banerjee on Tuesday alleged that the BJP was trying to include illegal voters from Bihar, Rajasthan, Haryana and Uttar Pradesh in the electoral rolls of the state to turn the poll outcome in favour of the saffron party.
Addressing an election rally in Paschim Medunipur’s Chandrakona, Banerjee also reiterated her plea before the gathering to ignore who the TMC candidates in the state’s assembly segments were and consider her as the candidate in all 294 seats.
“I was informed by Abhishek (Banerjee) yesterday that he had to rush to the EC office in Kolkata from the middle of his campaign schedule upon receiving information that about 30,000 forms were submitted in a single day to include fresh voters,” the TMC supremo said.
“The BJP is trying to include illegal voters from Bihar, Rajasthan, Haryana and Uttar Pradesh in the electoral rolls of Bengal. They are planning to transport outstation voters by means of railways, as they did in Bihar,” she alleged.
Claiming that the saffron party has "no respect" for Bengal and its people, the chief minister accused the BJP of colluding with the Election Commission and deleting names of women and minorities from the state’s electoral rolls in the garb of the SIR exercise.
“The BJP and EC are snatching the citizenship, constitutional and democratic rights of people. We will fight them every inch of the way,” Banerjee said.
Maintaining that the BJP would impose “ban on non-veg food consumption” of Bengalis if it comes to power in the state, the CM said the TMC would thwart the Centre’s attempts to implement NRC in the state through a backdoor and its plans of sending targeted citizens to detention camps.
