Talc Plaintiffs File Motion for Temporary Restraining Order to Limit Johnson & Johnson’s Use of Bankruptcy Strategy
June 12 2024 - 2:26PM
Business Wire
Filing says third bankruptcy attempt would
“create yet more delay” in compensating victims
A group of ovarian cancer victims has filed a motion in federal
court seeking to halt Johnson & Johnson (NYSE:JNJ) and its
subsidiaries from pursuing a new bankruptcy filing in any district
other than New Jersey, where tens of thousands of civil lawsuits
are already consolidated in multidistrict litigation.
The company recently announced the pursuit of a prepackaged
bankruptcy plan to resolve talc claims in an unspecified federal
court in Texas. Two previous bankruptcy filings by the company have
been denied by the courts in New Jersey, where J&J is
headquartered.
Today’s filing for a temporary restraining order accuses J&J
of attempting to evade jurisdiction and manipulate the bankruptcy
process to disadvantage tens of thousands of women who developed
cancer from continued use of Johnson’s Baby Powder and Shower to
Shower products. The motion for a TRO also seeks to prevent any
amendments to agreements between J&J and its subsidiaries to
fund the plan without notifying the plaintiffs.
"We will employ every appropriate mechanism possible to stop
J&J from using bankruptcy to deprive women of their individual
right to choose whether to settle or proceed to a jury trial.
Individuals should not be coerced to accept unreasonable settlement
values and terms through the bankruptcy vote of a group of others,”
says Andy Birchfield of the Beasley Allen Law Firm. “On behalf of
our clients, we will press on through all of J&J’s delay
tactics and bullying."
The plaintiffs argue that the company's actions, including the
proposed third bankruptcy filing, are designed to delay justice and
reduce the funds available to compensate victims. The claims
highlight the broader concerns expressed by legislators and legal
experts about the use of bankruptcy protections by financially
solvent companies to evade legal responsibilities for tort
claims.
“Johnson & Johnson is advertising its bankruptcy plan to a
group of desperate and dying claimants,” says Mike Papantonio of
Levin Papantonio Rafferty emphasizing the urgency that the TRO
request be heard at the earliest possible date.
The plaintiffs are represented by a coalition of law firms,
including Anapol Weiss, Levin Papantonio Rafferty Proctor Buchanan
O’Brien Barr Mougey P.A., Bailey Glasser LLP, Beasley Allen Crow
Methvin Portis & Miles, P.C., Ashcraft & Gerel, LLP, and
Burns Charest LLP.
The TRO motion is filed as Rebecca Love, et al. v LLT Management
LLC et al., No. 3:24-cv-06320, in the United States District Court
for the District of New Jersey.
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Mike Androvett mike@androvett.com 800-559-4630
Johnson and Johnson (NYSE:JNJ)
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