J&J Faces Class Action Over Talc, Seeks Cancer Monitoring

J&J Faces Class Action Over Talc, Seeks Cancer Monitoring

Introduction

Johnson & Johnson is now facing a proposed class action lawsuit seeking damages and medical monitoring for women diagnosed with cancer or at risk of developing it, allegedly due to using the company's baby powder and other talc products.

Filed in New Jersey federal court, this lawsuit is the first to request medical monitoring for talc users, aiming to detect cancer early. The proposed class could encompass thousands of women, excluding the more than 61,000 individuals who have already filed personal injury lawsuits claiming that J&J's talc contains cancer-causing asbestos.

J&J maintains that its talc products are safe, asbestos-free, and non-carcinogenic. The law firms behind this new case oppose J&J's proposal to settle nearly all talc claims for $6.48 billion through a prepackaged bankruptcy. They are also pursuing a separate class action to block the bankruptcy proposal, which requires support from 75% of talc claimants, with a voting period ending on July 26.

In response, J&J's worldwide vice president of litigation criticized the plaintiffs' lawyers, accusing them of filing a "meritless" lawsuit to obstruct the bankruptcy plan for higher fees, thereby prioritizing their interests over their clients'. He urged these firms to cease their "obstructionist behavior" and allow their clients to decide on the settlement offer.

Opposing lawyers deny fee-driven motives, arguing that the bankruptcy proposal would inadequately compensate their clients. One of the lawyers advocating for the new lawsuit stated that medical monitoring is crucial because the bankruptcy plan's "inadequate funding" does not sufficiently address the needs of women who could develop ovarian cancer from past talc use.

Both the proposed settlement and the new class action involve claims that talc caused ovarian and other gynecological cancers, which constitute the majority of cases. A smaller number of claims, primarily related to mesothelioma, have mostly settled. J&J has attempted and failed twice to resolve current and future talc claims through bankruptcy.

The legal strategy, known as a Texas two-step, involves creating a subsidiary to absorb the company's talc liability, which then declares bankruptcy to settle the cases. Previous efforts failed because courts found that the new subsidiary lacked the "financial distress" necessary to justify bankruptcy.