US Court Rejects Johnson & Johnson Bid To Dismiss Talc Product Lawsuits - Ruling

US Court Rejects Johnson & Johnson Bid to Dismiss Talc Product Lawsuits - Ruling

WASHINGTON (UrduPoint News / Sputnik - 31st January, 2023) The US 3rd Circuit Court of Appeals on Monday ruled against multinational corporation Johnson & Johnson's (J&J) attempt to have lawsuits over health concerns about their talc-based products dismissed.

Following concerns about trace amounts of asbestos in talc-based J&J products such as baby powder, which could cause ovarian cancer and mesothelioma, tens of thousands of lawsuits were filed against the company.

J&J subsidiary Old Consumer attempted to isolate the liabilities in a new subsidiary, LTL, that could file for Chapter 11 bankruptcy without subjecting Old Consumer's entire operating enterprise to bankruptcy proceedings.

"Good intentions - such as to protect the J&J brand or comprehensively resolve litigation - do not suffice alone.

What counts to access the Bankruptcy Code's safe harbor is to meet its intended purposes. Only a putative debtor in financial distress can do so. LTL was not. Thus we dismiss its petition," the court said in an opinion.

The decision restricts J&J's ability to move thousands of lawsuits out of trial courts and into bankruptcy court.

In August 2022, J&J announced their decision to transition to an all cornstarch-based baby powder, with plans to discontinue talc-based baby powder globally in 2023. In the same statement, the company reiterated their position that J&J talc-based baby powder is safe and free of asbestos, citing "decades of independent scientific analysis" and medical experts.