Johnson & Johnson (J&J) is facing a pivotal legal challenge as it seeks approval for a $10bn settlement plan to resolve allegations that its talc-based baby powder products caused ovarian cancer.
Source: Austin Kirk, Public domain, via Wikimedia Commons.
The company proposes to resolve these claims through the bankruptcy of its subsidiary, LTL Management LLC. This marks J&J’s third attempt to settle the litigation by means of this method.
The hearing, which commenced on Tuesday, 18 February, 2025, is being overseen by US Bankruptcy Judge Christopher Lopez in Houston. The outcome will determine whether J&J can implement its proposed settlement to address over 62,000 lawsuits alleging that its talc products were contaminated with asbestos and caused cancer—claims that J&J denies.
This approach has faced opposition with personal injury lawyers, insurers, and the US Trustee’s Office questioning the legitimacy of using Chapter 11 bankruptcy in this context. Additionally, there are disputes over the integrity of the voting process for the settlement, with allegations of irregularities and concerns about fair treatment of claimants.
The hearing is expected to continue until the end of February 2025.
Meanwhile, Johnson & Johnson announced in December last year that it will be updating its brand and uniting its two business segments—pharmaceutical and medical technology—under the Johnson & Johnson brand name in South Africa.
Janssen, the company’s pharmaceutical segment is now known as Johnson & Johnson Innovative Medicine. The medical technology segment will continue to be known as Johnson & Johnson MedTech.
The changes form part of a global rollout of the new Johnson & Johnson brand, first announced in September 2023.
