Product Liability – Talcum Powder Ruling

Automatic Stay in J&J Talcum Powder Lawsuits Being Lifted

Automatic Stay in J&J Talcum Powder Lawsuits Being Lifted

The automatic bankruptcy stay has barred new lawsuits over defective talcum powder against Johnson & Johnson and its subsidiaries for over a year, according to an update on February 15, 2023. When a bankruptcy is still pending, the automatic stay protects the debtor from being sued. Over one year ago, J&J launched its bankruptcy strategy in the talc litigation.

Following the rejection of this strategy by the 3rd Circuit, the bankruptcy will soon be dismissed, ending the automatic stay and allowing new talc product liability lawsuits to be filed. A California judge confirmed the bankruptcy stay would be ending soon. A 24-year-old suffering from terminal cancer has been granted a right to go to trial in a talc case.

Bankruptcy Plans Denied in the Court of Appeals

The bankruptcy plan by J&J to dismiss many talcum powder claims was denied by the 3rd Circuit Court of Appeals on January 30, 2023. A bankruptcy petition filed by J&J was dismissed by the appellate court. The news caused J&J’s stock to drop 3 percent. As a result of this major victory for plaintiffs, other mass tort cases will be impacted in a significant way. 

Judge Announced Plan to Dismiss Bankruptcy Lawsuit

During a bankruptcy hearing in New Jersey on February 14, 2023, U.S. Bankruptcy Judge Michael Kaplan told the court that he intends to dismiss J&J’s bankruptcy case due to the ruling by the Third Circuit Court of Appeals. Kaplan said he will dismiss the case once the Circuit mandate is issued. The case has been requested to be heard by the full 3rd Circuit, which would cause the process to be delayed.  

2018 Talcum Powder Lawsuit Results in Multi-Billion Dollars in Damages

In recent years, there have been a number of product liability lawsuits filed against companies that manufacture the product, such as Johnson & Johnson, claiming that the use of powdered talc can lead to ovarian cancer and other health issues. In one significant case in 2018, a jury in Missouri awarded $4.69 billion in damages to 22 women who claimed that their use of J&J’s talcum powder products contributed to their ovarian cancer. The plaintiffs argued that the company knew about the potential health risks associated with the product but failed to adequately warn consumers.

This ruling was significant because it marked the largest jury award to date in one of the defective product lawsuits. However, the verdict was later overturned on appeal, and the case is still ongoing. Despite this ruling being overturned, there have been several other cases that have resulted in significant settlements and judgments against Johnson & Johnson and other manufacturers. 

Diaz Law Firm: J&J Talcum Powder Lawsuits

The Diaz Law Firm can help you if you suffered an injury due to J&J powdered talc products. Call us at 1-800-459-2222 to reach us toll-free or at (601) 607-3456 locally. You can also reach us online. We offer a free consultation to discuss your case and tell you whether you can file a claim to recover compensation. As part of our contingency-based fee structure, we are not paid unless you are successful. Our firm handles cases throughout the country.