J&J Is Using A Bankruptcy Maneuver To Block Lawsuits Over Baby Powder Cancer Claims

[appalachiablue]

Source: NPR

Johnson & Johnson is drawing criticism after using a controversial bankruptcy maneuver to block roughly 38,000 lawsuits linked to claims that its talc baby powder was contaminated with cancer-causing asbestos. The health products giant used a quirk of Texas state law to spin off a new company called LTL, then dumped all its asbestos-related liabilities- including the avalanche of lawsuits- into the new firm.

LTL filed for bankruptcy last week in a federal court in Charlotte, N.C., a move designed to sharply limit efforts to recover damages for those who say they were harmed by J&J's baby powder. "Johnson & Johnson doesn't have this liability anymore. They pushed all of it into the company they created just to file for bankruptcy," said Lindsey Simon, a bankruptcy expert at the University of Georgia School of Law.

As a result, Simon said, "consumers can't recover [damages] against a big solvent company. They have to recover against this smaller fictional company created [by J&J]." The move sparked outrage from lawmakers and consumer advocates. "J&J knew asbestos laced some bottles but kept it a secret for decades," Rep. Katie Porter, D-Calif., tweeted on Tuesday.

"Tens of thousands of women with ovarian cancer are suing, and the company wants to shield its assets." In 2018, separate investigations by Reuters and The New York Times revealed documents showing Johnson & Johnson fretted for decades that small amounts of asbestos lurked in its baby powder, without telling regulators...

Read more: https://www.npr.org/2021/10/21/1047828535/baby-powder-cancer-johnson-johnson-bankruptcy

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[appalachiablue]

1. 'J&J Knew For Decades That Asbestos Lurked In Its Baby Powder,' Reuters

https://www.reuters.com/investigates/special-report/johnsonandjohnson-cancer/

[Wicked Blue]

2. J&J is totally evil

They like to promote themselves as the nice people who bring you baby shampoo and adhesive bandages for your boo-boos ... but in reality they don't give a crap about what their products do to hurt people. And then they will use all kinds of "legal" trickery to avoid taking responsibility. This happens again and again and again with them.

[PurgedVoter]

3. How about criminal liability for everyone who saw the documents and didn't tell the regulators

I think impending jail for them might help them point the blame up to the people who were profiting from the decision. If someone profited from murder, isn't that against the law?

This is like my taking a tissue, blowing my nose in it and claiming that all my sins are now in the tissue so I can't be held responsible.

[cadoman]

4. can I do this with my student loans?

Perhaps "cadoman Destitution LLC" can suffer for all my follies?

This kind of behavior perhaps also explains why their vaccine is generally regarded as being last place.

[NullTuples]

5. Sure...but you have to move to Texas.

So either way it's gonna cost you.

[dixiegrrrrl]

9. IIRC......Cal. also.

California power company, PG&E used similar tactic to avoid debts related to Enron relatedcharges, and probably will use again with all the fines related to their part in the recent years of forest fires.


I'm also thinking Comcast did it. They are so despised in Cal.

[NullTuples]

11. Grrrr - PG&E has been swindling California since power was deregulated

[McKim]

6. My Dear Friend Died from This!

My dear friend died from this! Baby powder was commonly used in the 40's and 50's. J and J must pay!!!!

[bobalew]

7. Simply put,

This is nothing but a well oiled BONUS FUNDING campaign.....

[bobalew]

8. Simply put,

This is nothing but a well oiled BONUS FUNDING campaign.....

[Ron Obvious]

10. Corporations are sociopathic entities

Chartered to maximise shareholder profit over all concerns and abstracts away human compassion and responsibility.