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In The News

Johnson & Johnson's Bankruptcy Plan to be Reviewed by Appellate Court

A Federal Appeals Court will revisit the controversial ruling allowing Johnson & Johnson to use the Texas Two-Step tactic to transfer individual talc lawsuits to mass bankruptcy claims.

In February, a U.S. Bankruptcy Court Judge sided with J&J in proceeding with Chapter 11 despite their massive assets, leaving about 38,000 cancer victims on hold. The ruling was a devastating blow to mesothelioma and ovarian cancer plaintiffs who were being denied their day in court with limited opportunity for compensation. The scheme is seen an effort to dodge responsibility for their asbestos-tainted talc Baby Powder.

We have now learned that a month following the ruling, the Judge asked the Third Circuit Court of Appeals to review his decision as soon as possible, perhaps signaling just how problematic J&J’s misuse of the U.S. Bankruptcy really was. We will be following this development closely.

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