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J&J Use Spinoff Bankruptcy to Escape Talc Claims

By
James Parker
/
October 22, 2021

On October 14, Johnson & Johnson confirmed the fears of talc lawsuit plaintiffs as the company assigned its legal liabilities to a subsidiary and immediately filed for Chapter 11 bankruptcy protection in North Carolina. This move could stop talc litigation dead in its tracks as the tens of thousands of plaintiffs are forced to make their claims against a now-bankrupt subsidiary instead of the main company of Johnson & Johnson.

Through a legal process referred to by plaintiffs as the “Texas two-step,” Johnson & Johnson was able to create a subsidiary, LTL management, and divide all assets and liabilities between LTL and Johnson & Johnson however they choose. In this instance, Johnson & Johnson divested all current and future talc liability onto LTL Management before plunging the entire company into Chapter 11 bankruptcy. 

Bankruptcy judges in two states blocked plaintiff efforts to stop this move by Johnson & Johnson, which plaintiffs’ attorney Andy Birchfield told Law360 was, “another example of the wealthy and powerful using bankruptcy as a hiding place to protect their profits and avoid responsibility.”

If this bankruptcy procedure goes through, all of Johnson & Johnson’s responsibility for allegedly causing ovarian cancer in tens of thousands of women will die with LTL Management.

If you or a loved one have suffered from the use of talcum powder, then you may be able to recover costs through a lawsuit. In order to file with the large-scale MDLs already in progress, you will need a mass torts attorney. 

An experienced mass torts attorney can help you join MDLs and advocate on your behalf. Additionally, a mass torts attorney representing you can assess whether a settlement agreement is to your benefit and withdraw you if necessary. The best place to find an experienced mass torts attorney is Attorney at Law.

At AAL, our nationwide network of law firms and attorneys allows us to match you with a mass torts attorney in your area. Our partners have the resources, legal expertise, and experience to take on the biggest corporations in the nation and emerge victorious. 

In addition to a distinguished case record, our partners also excel in client care. Mass tort cases can drag on for years and many clients worry about the cost of litigation. That’s why the law firms AAL partners with take mass torts cases on contingency.

Under the contingency system, the law firm will charge nothing upfront and only agree to take a flat percentage of the winnings. That guarantees that the clients get their compensation and it means that if you don’t win, you don’t pay anything.

Don’t wait. Contact AAL today for a free, no-obligation consultation and begin your journey to justice.

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