NJ Court Tosses $223.8M J&J Talc Verdict

NJ Court Tosses $223.8M J&J Talc Verdict

Introduction

A New Jersey appeals court has invalidated a $223.8 million verdict against Johnson & Johnson, which had been awarded by a jury to four individuals alleging they developed cancer due to asbestos exposure from the company's talc powder products.

The Appellate Division of the Superior Court of New Jersey determined that the lower court judge should not have permitted certain scientific expert testimony presented by the plaintiffs during the trial.

Johnson & Johnson's Worldwide Vice President of Litigation stated that this decision strongly rejects what they referred to as "junk science" presented by so-called "experts" paid by asbestos-related mass tort lawyers. The company reiterated its stance that its talc products are safe and do not contain asbestos. The plaintiffs' attorney did not provide an immediate response to the decision.

The initial jury ruling required Johnson & Johnson to pay $37.2 million in compensatory damages and $750 million in punitive damages, though this amount was reduced to $186.5 million under state law.

In overturning the verdict and ordering a new trial, a panel of three judges from the appeals court determined that the trial court had not properly assessed whether the plaintiffs' experts had based their testimony on sound scientific principles.

The judges found that three of the experts had not adequately explained the facts or methods behind their opinions that the plaintiffs had developed cancer due to asbestos exposure from talc products.

Johnson & Johnson is separately pursuing legal action against one of these experts based on a study she co-authored in 2019, although this study was not central to the jury's decision. This particular expert, who has testified for plaintiffs in numerous talc-related cancer cases, has argued that the lawsuit against her is an attempt to intimidate scientific experts and discourage them from testifying against the company.

Johnson & Johnson faces more than 38,000 lawsuits asserting that its talc products, including Johnson's baby powder, may contain asbestos and have been linked to various cancers, including ovarian cancer and mesothelioma.

The outcomes of these claims have been mixed, with some significant victories for plaintiffs, including a $2.1 billion judgment upheld by an appeals court. The U.S. Supreme Court declined to review that verdict.

Johnson & Johnson has recently succeeded in reversing some unfavorable verdicts, including a $117 million judgment in the same New Jersey appeals court and a $120 million verdict in New York.

This latest legal victory for the company follows its unsuccessful attempt in July to move tens of thousands of talc-related claims into bankruptcy court, where it sought to resolve them through an $8.9 billion proposed settlement. Johnson & Johnson is currently appealing that ruling.

Trials had been on hold during the bankruptcy court petition, but they can now proceed. One trial allowed during the bankruptcy petition process resulted in an $18.8 million verdict in favor of a terminally ill California man.

Johnson & Johnson has disclosed that the cost of talc-related verdicts, settlements, and legal fees has reached approximately $4.5 billion. The company ceased selling talc-based baby powder and shifted to cornstarch-based products due to the increasing number of lawsuits and concerns about the safety of talc-based products.