J&J's Talc Bankruptcy Bid Triumphs, Cancer Victims Outraged

A federal judge on Friday dismissed an attempt by a group of cancer victims to prevent Johnson & Johnson (JNJ.N) from proceeding with a proposed bankruptcy settlement addressing tens of thousands of lawsuits. These lawsuits claim that the company's baby powder and other talc products contain cancer-causing asbestos. On June 11, the cancer victims had sought a preliminary injunction in New Jersey to stop J&J from filing for bankruptcy outside the state, a move that would have undermined the $6.48 billion settlement plan. This request was part of a class action lawsuit led by plaintiffs' attorneys against the settlement proposal.

On Friday, U.S. District Judge Michael Shipp ruled that he could not approve the motion, stating that any potential harm to the victims was "strictly hypothetical." He emphasized that he had no authority to adjudicate a conflict over "events that have not, and may never, happen." The plaintiffs' lawyer did not respond to a request for comment late Friday. Johnson & Johnson aims to secure backing from 75% of the claimants for its prepackaged bankruptcy plan, with a voting deadline set for July 26.

The healthcare conglomerate is currently dealing with lawsuits from over 61,000 plaintiffs who claim that its talc products caused ovarian cancer or mesothelioma, a lethal cancer associated with asbestos exposure. Johnson & Johnson insists that its talc is safe, free from asbestos, and not cancer-causing. The company argues that a bankruptcy settlement provides a fair and equitable compensation for claimants, unlike the civil justice system where the majority of plaintiffs receive nothing while a few receive disproportionately large awards.