Johnson & Johnson (J&J) is facing backlash for a new legal strategy that has raised concerns among lawyers representing victims of talc-related cancers. The strategy involves encouraging unsupported claims in exchange for votes on a payment plan that could cheat actual victims of fair compensation.
Andy Birchfield, head of the Mass Torts Section at the Beasley Allen Law Firm, expressed his concerns about the proposed payment plan, stating, “We believe any bankruptcy based on this solicitation and vote will be found fraudulent and filed in bad faith under the Bankruptcy Code. On behalf of our clients who deserve better, we are blowing the whistle on this cynical legal tactic and will resist it at every turn.”
The alarming aspect of J&J's strategy is highlighted by the fact that the company is offering minimal payments for claims previously deemed "worthless," in exchange for support for the payment plan. This plan would result in actual victims receiving far less compensation than they deserve, especially considering the high medical costs associated with treating talc-related cancers.
Leigh O’Dell, co-lead counsel for plaintiffs in the federal MDL and principal at the Beasley Allen Law Firm, pointed out the questionable nature of J&J's tactics, stating, “The company is afraid of a legitimate vote among those who are truly sick and the families of the deceased who have been battling J&J’s obstruction and bad faith for years and who are supported by numerous scientific studies showing that talc contains asbestos and other known cancer-causing ingredients.”
This is not the first time J&J has attempted to evade legal responsibility through bankruptcy. With this being the third bankruptcy attempt in three years, it is clear that the company is persistent in its efforts to avoid accountability for the harm caused by its products.
If J&J succeeds with this strategy, it could set a dangerous precedent for other companies to follow suit and manipulate the U.S. bankruptcy system to evade liabilities. Despite the challenges, lawyers representing the victims remain steadfast in their commitment to fighting for justice and ensuring that their clients receive the compensation they rightfully deserve.