J&J And Imerys Talc Appeal Over A $117M Talc Verdict

J&J And Imerys Talc Appeal Over A $117M Talc Verdict

Introduction

On Tuesday, Johnson & Johnson (J&J) and Imerys Talc America, Inc. over a remote hearing requested the New Jersey state appeals court to toss a $117 million verdict awarded to a man and his wife in damages against allegations of asbestos-laced talcum products.

The defendants have made the request over an array of alleged problems that happened during the trial, which include a "devastating" jury instruction dealing with the destruction of talc samples and improper expert testimony on the purported contamination. An attorney representing J&J further added that the decision presents a stark injustice with seismic ramifications not just for J&J but for the judicial system throughout the state.

The verdict was awarded to the plaintiffs in April 2018 after a more-than-two-month trial. The jurors held J&J 70% liable and Imerys 30% liable for the man's mesothelioma. The man received $30 million and his wife received $7 million in compensatory damages. The couple was awarded $55 million in punitive damages against J&J and $25 million against Imerys a week later.

The defendants are challenging the decision of how a Superior Court Judge instructed jurors that they could draw an adverse inference against Imerys over certain missing talc samples and transmission electron microscopy (TEM) grids.

In the recent hearing, each side was questioned by the three-judge panel about the alleged contamination evidence and the claims that the jury instructions were prejudicial.

Last week, the talcum giant petitioned a Writ of Certiorari with the U.S. Supreme Court to review the $2.1 billion verdict, which was awarded to a group of women over allegations of ovarian cancer from the company's Talcum powder.

The decision is a big victory for J&J and Imerys in litigation across the country over claims that purportedly asbestos-containing talc supplied by Imerys or its predecessors and used in J&J products have left consumers cancer-stricken.

J&J after the verdict stated in a statement that, "The court struck at the core strategy of the plaintiffs' bar, concluding that paid experts are not allowed to present junk science that purports to find asbestos where there is none. These unproven theories have been the centerpiece of the talc litigation, and today's opinion marks an important rejection of that approach".

While Imerys stated in a statement that it is "very pleased by the appellate court's decision to reverse the verdict in the case," and that it "stands by the integrity and safety of our products."

On the other hand, the plaintiff's attornies are disappointed by the panel's decision. Since this case was tried in 2018, investigative journalists have published about the asbestos in J&J talc, the FDA found asbestos in off-the-shelf baby powder, additional scientific studies linking talcum powder usage to mesothelioma were published. 

Recently, J&J also filed an Annual Report Pursuant to Section 13 of the Securities Exchange Act of 1934, indicating that it has set aside $3.9 billion in litigation expenses in 2020, which is primarily associated with talc-related reserves and certain settlements.