Johnson & Johnson (JNJ.N) is now confronting a fresh legal challenge in the form of a proposed class action seeking damages and medical monitoring for women allegedly affected by cancer linked to its baby powder and other talc products.
Filed in a New Jersey federal court on Monday, this lawsuit marks the first attempt to secure medical monitoring, which involves regular testing aimed at early cancer detection, for individuals who have used J&J’s talc products. While potentially encompassing thousands of women, the proposed class excludes the over 61,000 individuals already involved in personal injury lawsuits against J&J, alleging their talc contains cancer-causing asbestos.
J&J maintains that its talc products are safe, asbestos-free, and do not cause cancer.
The law firms spearheading this new case are also actively opposing J&J’s $6.48 billion settlement proposal to resolve most talc-related claims through a prepackaged bankruptcy. These firms are concurrently pursuing a separate class action seeking court intervention to block the bankruptcy proceedings, which require 75% support from talc claimants by the end of a three-month voting period on July 26.
Erik Haas, J&J’s worldwide vice president of litigation, condemned the new lawsuit as “meritless” and accused plaintiff lawyers of obstructing the bankruptcy plan to maximize their fees, allegedly prioritizing their own interests over their clients’. He urged the plaintiff firms to cease their obstructive tactics and allow their clients to independently evaluate the pending settlement offer.
In response, lawyers contesting the settlement argue that the bankruptcy proposal fails to adequately compensate their clients. Chris Tisi, one of the attorneys involved in the new lawsuit, emphasized the necessity of medical monitoring due to the perceived inadequacy of funding in J&J’s bankruptcy plan, especially in addressing potential future cases of ovarian cancer linked to past talc use.
Both the proposed settlement and the new class action focus on claims that J&J’s talc products contributed to ovarian and other gynecological cancers, which constitute the majority of cases. A smaller subset of claims involves individuals who developed mesothelioma, most of which have been settled.
This legal battle follows J&J’s unsuccessful prior attempts to resolve current and future talc-related claims through bankruptcy. The company’s strategy, known as the “Texas two-step,” involves establishing a subsidiary to absorb talc liabilities, which then declares bankruptcy to settle claims. Previous efforts were thwarted by court rulings questioning the subsidiary’s purported financial distress justifying bankruptcy.
As the legal and financial implications unfold, J&J continues to face mounting challenges in addressing the fallout from allegations regarding the safety of its talc products.
