The July 26 deadline is looming for voting on Johnson & Johnson's (J&J's) proposed $8 billion settlement ($6.75 billion net present value) to resolve claims that the company's talcum powder caused ovarian cancer. In related news, the company's move to disqualify an opposing law firm on this settlement (through bankruptcy) was rejected, per Reuters, and the company proposed a $505 million settlement to two talc suppliers, Cyprus Mines Corp. and Imerys Talc America. Both companies were named as co-defendants with J&J in a number of talc lawsuits, per Asbestos.com, and both claimed bankruptcy due to J&J. Following are updates on these activities.
The July 26 deadline is looming for voting on Johnson & Johnson's (J&J's) proposed $8 billion settlement ($6.75 billion net present value) to resolve claims that the company's talcum powder caused ovarian cancer. In related news, the company's move to disqualify an opposing law firm on this settlement (through bankruptcy) was rejected, per Reuters, and the company proposed a $505 million settlement to two talc suppliers, Cyprus Mines Corp. and Imerys Talc America. Both companies were named as co-defendants with J&J in a number of talc lawsuits, per Asbestos.com, and both claimed bankruptcy due to J&J. Following are updates on these activities.
See related: J&J Talc Suit Tally: $6.48 B Offer, $11 B Reserves, $700 M to States — Plus New Class Action and Talc-Cancer Evidence
Women Encouraged: Accept J&J's $8 B Offer
Businesswire highlighted the July 26 deadline to vote for J&J's proposed settlement of $8 billion (net $6.75 billion, present value) for talc-related ovarian cancer lawsuits. Those claims account for 99.75% of the talc-related lawsuits filed against J&J, the company stated. As previously reported, the settlement would be made through LTL Management, J&J's subsidiary, through a third bankruptcy filing.
Per Drugwatch, in order for this settlement to proceed, three-quarters of the approximately 61,000 plaintiffs must agree to the offer. Bloomberg added that this 75% threshold is because J&J is seeking a "pre-packaged" bankruptcy "under rules allowing companies to speed through Chapter 11 cases if they have enough creditor support."
As reported by Reuters, many plaintiffs' lawyers are urging them to take the deal since some plaintiffs are dying as the legal battle drags on. Voting in favor would therefore avoid many years of additional litigation. Opposing counsel Beasley Allen is reportedly pushing for a larger settlement.
J&J's Move Denied to Disqualify Opposing Bankruptcy Counsel Beasley Allen
In December 2023, per Bezinga, J&J moved to disqualify the law firm Beasley Allen as opposing counsel in the proposed $8 billion settlement/bankruptcy filing case, alleging the firm's partner, Andy Birchfield, formed an unethical alliance with a former Johnson & Johnson lawyer, James Conlan, who was accused of disclosing confidential information to Birchfield.
However, on July 19, 2024, Atlantic County Superior Court Judge John Porto ruled that Beasley Allen should not be disqualified from the case, as there was insufficient proof of this allegation, Law.com reported. J&J Worldwide Vice President of Litigation, Erik Haas, stated J&J would appeal this ruling.
$505 M Settlement Proposed to J&J Talc Suppliers
Finally, J&J proposed a $505 million settlement to two former talc suppliers, Cyprus Mines Corp. and Imerys Talc America. Both companies were named as co-defendants with J&J in a number of talc lawsuits, per Asbestos.com. Imerys Talc filed for bankruptcy in 2019 to manage litigation costs and Cyprus followed suit in 2021, according to Aboutlawsuits.com.
More recently, on July 13, 2024, the two suppliers and J&J filed a joint motion in the U.S. Bankruptcy Court for the District of Delaware. The deal calls for J&J to make an initial $225 million payment, followed by an additional $280 million in proceeds paid from the company’s insurance policies. The latter would go into a settlement trust to pay personal injury claims filed against the two talc mining companies, Aboutlawsuits reported.
