Attorneys challenge Johnson & Johnson's third bankruptcy attempt over talc-related cancer claims

Attorney Complaints
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Tom Methvin, Principal, Managing Attorney | Beasley Allen, law firm, GA

Beasley Allen, along with other attorneys representing tens of thousands of women with ovarian cancer linked to Johnson & Johnson’s talc products, have vowed to fight the company’s latest bankruptcy filing. The New Jersey-based pharmaceutical giant claims that 83% of surveyed plaintiffs have agreed to the terms of their pre-packaged bankruptcy plan, but attorneys argue this is a manipulation of the process.

Beasley Allen’s Andy Birchfield criticized the vote, calling it a “fraudulent effort” to minimize the claims of ovarian cancer victims. He argued that it’s outrageous for a company as wealthy as J&J to use bankruptcy to avoid fairly compensating the women affected.

Even if J&J only offers compensation for claims that are backed by science, the average amount paid out would still not be enough to cover the medical bills for most people with ovarian cancer. The cost of medical treatment can be between $50,000 and more than $1.5 million, averaging around $220,000. When considering lost wages and people’s pain and suffering, it’s clear that J&J’s proposed compensation isn’t enough.

Lawyers are raising concerns about how fair the voting was in the J&J bankruptcy case due to problems that seemed to help J&J. For example, votes from people with different types of cancer, not just ovarian cancer, were counted, making the voting results inaccurate.

Beyond financial concerns, there is uncertainty about when or if ovarian cancer victims will receive compensation. In similar cases where companies went bankrupt, it took a very long time for victims to see any compensation if they got any at all. Andy is asking the court to look closely at what J&J is promising. He’s worried that they might not be held responsible in the end.

Andy pointed out that the Supreme Court recently decided in Harrington v. Purdue Pharma that a similar plan should be stopped and that J&J’s plan should be rejected for the same reasons. He also criticized J&J’s choice to file their case in the Southern District of Texas, saying it was a clear way of trying to find a favorable location for their case.

Lawmakers are also considering the “Texas Two-Step” strategy which involves transferring debts to a smaller company that then files for bankruptcy. Both Republicans and Democrats have proposed a new law to prevent this method and prevent lawsuits against companies that haven’t declared bankruptcy.

As this legal battle progresses, our law firm and other lawyers are making it clear that Johnson & Johnson needs to take responsibility for its actions and make consumer safety a priority.