Johnson & Johnson is using a bankruptcy maneuver to block lawsuits

WFUV: Johnson & Johnson is drawing criticism after using a controversial bankruptcy maneuver to block roughly 38,000 lawsuits linked to claims its talc baby powder was contaminated with cancer-causing asbestos.

The health products giant used a quirk of Texas state law to spin off a new company called LTL, then dumped all its asbestos-related liabilities — including the avalanche of lawsuits — into the new firm.

LTL filed for bankruptcy last week in a federal court in Charlotte, N.C., a move designed to sharply limit efforts to recover damages for those who say they were harmed by J&J’s baby powder.

“Johnson & Johnson doesn’t have this liability any more, they pushed all of it into the company they created just to file for bankruptcy,” said Lindsey Simon, a bankruptcy expert at the University of Georgia School of law.

As a result, Simon said “consumers can’t recover [damages] against a big solvent company. They have to recover against this smaller fictional company created [by J&J].” The move sparked outrage from lawmakers and consumer advocates. more here

9 Comments on Johnson & Johnson is using a bankruptcy maneuver to block lawsuits

  1. can I still sue for my Grandfather’s inhalation of of Brylcreem, Witch Hazel & Butch Wax as a career barber? … obviously chemical alterations
    can I still sue for my Dad as a user of Kiwi Shoe Polish & Brasso during his time as a Police Officer? … matter of fact, I polished a shit-load of his leather & brass (note to my lawyers!)
    can I sue because I worked in construction & industrial maintenance, exposed to so much asbestos so that I’ve had to be tested every year after that?

    folks, we ain’t getting out of here alive, no matter who we blame for our demise.
    make peace w/ your maker … it’s never too late
    & thank your mom … it’s never too late

    it’s late … I’m rambling …. ….. good night

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  2. I’m surprised they aren’t protected like a pharmaceutical company. They can inject poison, but can’t use powder your _______.
    Warren
    “Here we go again. Another giant corporation is abusing our bankruptcy system”,and don’t give me a cut.

    Fuel companies did this years ago to avoid cleaning up old fuel storage sites and gas stations.
    Do you remember the fuel Super Fund? Money disappeared, didn’t clean up $hit.

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  3. To anyone that mocks people that are skeptical about the safety of the vaccines just remind them that up to 20 years ago talcum powder was considered completely harmless – there’s no better example.

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