Johnson & Johnson (J&J) is in negotiations with plaintiffs’ lawyers who have opposed its proposed settlement of lawsuits alleging that its baby powder and other talc products caused cancer. The company aims to eliminate opposition to finalize a $6.48 billion global settlement through the bankruptcy of a subsidiary, following two rejections by federal courts.
J&J claims that the majority of claimants support the settlement offer. However, the company has paused the vote count to secure more votes from plaintiffs who had recently opposed the deal. “We have agreed to a short extension of the certification timeline,” said Erik Haas, J&J’s worldwide vice president of litigation. This extension allows plaintiffs’ attorneys to discuss the settlement with their clients and possibly gain their support.
Andy Birchfield, a lawyer leading the opposition to J&J’s proposed bankruptcy settlement, expressed openness to negotiations but is prepared to resist another Chapter 11 filing. “Our ultimate objective is fair compensation in a timely manner for ovarian cancer victims. If J&J is becoming more reasonable by negotiating with some claimants, we applaud that,” Birchfield stated. He also noted, “If J&J chooses the bankruptcy route for the third time, we will oppose it and believe the company will fail.”
J&J plans to place a subsidiary into bankruptcy if at least 75% of the talc claimants vote for its settlement proposal. This bankruptcy settlement would resolve all talc-related lawsuits alleging that J&J products cause ovarian cancer and prevent similar cases from being filed in the future.
J&J faces lawsuits from more than 62,000 plaintiffs who claim that its baby powder and other talc products were contaminated with asbestos and caused ovarian and other cancers. J&J denies these allegations, asserting that its products are safe, do not contain asbestos, and do not cause cancer.