Johnson & Johnson has agreed to contribute $8.9 billion, payable over 25 years, to resolve all current and future talc claims, which is an increase of $6.9 billion over the $2 billion previously committed in connection with LTL’s initial bankruptcy filing in October 2021.
 
Under a proposal announced Tuesday, Johnson & Johnson’s subsidiary LTL Management LLC has re-filed for voluntary Chapter 11 bankruptcy protection to obtain approval of a reorganization plan that will resolve all claims arising from cosmetic talc litigation against the Company and its affiliates in North America.
 
LTL also has secured commitments from over 60,000 current claimants to support a global resolution on these terms.
 
Johnson & Johnson and its other affiliates did not file for bankruptcy protection and will continue to operate their businesses as usual.

J&J Still Maintains that Talcum Powder Products are Safe

Neither LTL’s original filing nor this re-filing is an admission of wrongdoing, nor an indication that the company has changed its longstanding position that its talcum powder products are safe, says Johnson & Johnson.
 
“The Company continues to believe that these claims are specious and lack scientific merit,” said Erik Haas, Worldwide Vice President of Litigation, Johnson & Johnson. “However, as the Bankruptcy Court recognized, resolving these cases in the tort system would take decades and impose significant costs on LTL and the system, with most claimants never receiving any compensation. Resolving this matter through the proposed reorganization plan is both more equitable and more efficient, allows claimants to be compensated in a timely manner, and enables the Company to remain focused on our commitment to profoundly and positively impact health for humanity.”
 
John Kim, Chief Legal Officer of LTL, added, “Notwithstanding the lack of scientific validity to these claims, plaintiff trial lawyers continue to relentlessly advertise for talc claims, supported by millions of dollars of litigation financing, all in the hopes of a massive return on investment. LTL’s goal has always been to resolve these claims quickly, efficiently and fairly for the claimants, both pending and future, and not incentivize abuse of the legal system. We filed the original action in good faith, and, heeding the Third Circuit’s guidance, have filed this new case to effectuate that intent.”
 
The Company has won the vast majority of cosmetic talc-related jury trials that have been litigated to date and reiterates that none of the talc-related claims against the Company have merit. The claims are premised on the allegation that cosmetic talc causes ovarian cancer and mesothelioma.
 
Still, despite the company’s insistence that its talc products are safe, it discontinued sales of talc-based Johnson’s Baby Powder in the U.S. and Canada in 2020 and transitioned to an all cornstarch-based baby powder portfolio globally in 2022.

Previous Chapter 11 Petition

A previous Chapter 11 petition by LTL was rejected earlier this year by the Third Circuit Court in Philadelphia, which ruled that neither J&J nor its subsidiary was in “financial distress.” Following the appellate court rejection of the company’s motion to rehear the case last month, J&J said it would seek U.S. Supreme Court review.
 
The strategy, known as the Texas two-step, has kept the lawsuits frozen for 18 months. Dismissal of the Chapter 11 filing would return those cases back to the civil tort system.

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