J&J Talc Lawsuits: US Judge Halts Litigations as Company Pursues $8.9 Billion Settlement

A United States bankruptcy judge ordered to stop tens of thousands of talc lawsuits against J&J
The decision comes as the company is working on a massive $8.9 billion settlement with the plaintiffs
Plaintiffs claim that the attempt has a relatively low chance of being successful

A United States bankruptcy judge ordered to halt of tens of thousands of lawsuits against J&J's talc products that alleged they caused cancer.

They also ordered the stopping of any trials related to the cases as part of a company subsidiary's second attempt to settle the lawsuits in bankruptcy proceedings. Judge Michael Kaplan's order temporarily suspended most of the litigation during a Trenton, New Jersey, hearing.

J&J Talc Lawsuits Halted

For the most part, Kaplan's decision would grant a request from J&J to freeze cases as it tries to reach a permanent settlement with current plaintiffs that would also set aside funds to pay anyone who could sue the company later over the same case.

The pharmaceutical company said it has broad support for a potential $8.9 billion settlement. It is considered a contention disputed by lawyers who were representing the claimants who oppose it, as per the Straits Times.

LTL Management, a J&J subsidiary, was the one who filed for bankruptcy for a second time earlier this month. The move was part of an attempt to finalize the company's latest deal despite a decision by a federal appeals court earlier this January that virtually invalidated its first Chapter 11 filing.

In a court hearing on Thursday, Kaplan said that he had more questions than answers regarding the case. His remarks were a reference to arguments that were made to him regarding the second bankruptcy case earlier this week.

The bankruptcy judge ordered to halt of roughly 38,000 talc lawsuits consolidated in a federal district court in New Jersey. On the other hand, he allowed other cases to proceed as long as no trial commenced.

Working Towards $8.9 Billion Settlement

The case comes after J&J spun off LTL Management in 2021 to carry its talc-related liabilities and finally be able to file for Chapter 11 bankruptcy protections. Now, the pharmaceutical company, thanks to Kaplan's order, will not have to go to trial over any other talc claims, according to CNBC.

However, new lawsuits can still be filed against the company to sue them for potential damages caused by the alleged side effects of the products. Kaplan noted that J&J faces an "uphill battle" over the issue.

The judge's ordered pause will give the pharmaceutical company enough time to complete its settlement attempt with the plaintiffs. Following the announcement of J&J's massive settlement plan, it noted that it plans to bring the plan to bankruptcy court in the middle of May.

The opposition to company's bid for a stay was opposed by two groups of cancer plaintiffs as well as the United States Department of Justice's bankruptcy watchdog. They argued that it was simply a fraudulent attempt to avoid an earlier court ruling and that their second attempt had little chance of success, said Reuters.