In a significant development, a judge has dismissed the second bankruptcy case filed by Johnson & Johnson over its talcum baby powder liabilities. Despite expressing some reservations, U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey, ruled in favor of cancer victims who argued that the new bankruptcy case was devoid of goodwill.
Johnson & Johnson has continued to seek bankruptcy protection for its liabilities linked to the expected claims over its talc-based baby powder, alleged to cause ovarian cancer. The company’s prior attempt was suspended by a Manhattan bankruptcy judge in December.
While the latest dismissal marks a blow to the pharmaceutical giant, Kaplan highlighted that it was not “an easy decision.” He acknowledged Johnson & Johnson’s right to untangle itself from the talc-related disputes, however, he pointed out that these methods might be deemed as “shirking responsibility.”
An extensive amount of scientific research has scrutinized the possible links between talcum powder and various types of cancer, particularly ovarian. Some of these studies have detected a marginal increase in risk, while others have found no connection at all. As per claims, the company allegedly knew about the potential risks but failed to warn consumers.
Suffice to say, legal battles over the safety of talc-based products aren’t new. In fact, they’ve been going on for years. What adds a layer of complexity to this case is the enormity of the company involved: Johnson & Johnson, one of the largest healthcare companies in the world.
The healthcare company’s attempted use of bankruptcy laws to manage these lawsuits has spurred widespread debate among the legal profession. Many have raised concerns about the implications for future mass-tort cases. At present, a full appeal to the dismissal is expected to take place, extending the legal wrangling over the matter into the foreseeable future.
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