NEW YORK — A bunch of most cancers victims sued Johnson & Johnson JNJ.N on Wednesday, accusing the healthcare firm of committing fraud by way of repeated and continued efforts to make use of a shell firm’s chapter to resolve tens of 1000’s of lawsuits alleging its talc products contained asbestos and brought about most cancers.
5 plaintiffs who search to signify over 50,000 individuals who have sued J&J over its talc merchandise filed the proposed class motion in New Jersey federal court docket.
They allege that J&J’s chapter technique put billions of {dollars} out of the attain of plaintiffs in an try to “hinder, delay, and defraud these girls and forestall them from ever having their day in court docket.”
“Johnson & Johnson is taking part in a darkish sport of chess with this nation’s monetary and judicial programs,” mentioned Mike Papantonio, an legal professional for the most cancers plaintiffs.
J&J’s worldwide vice chairman of litigation, Erik Haas, mentioned the lawsuit was a “Hail Mary move” by plaintiffs’ legal professionals who don’t need their shoppers to vote on the corporate’s newest proposed chapter settlement.
“Why are they so determined to cease the vote?” Haas mentioned. “Our focus has been and can stay reaching a full, truthful and last decision of this litigation, and permitting the claimants to talk for themselves.”
Many of the talc lawsuits have been introduced by girls with ovarian most cancers, whereas different circumstances contain folks with mesothelioma, a lethal most cancers linked to asbestos publicity.
J&J has mentioned that its child powder and different talc merchandise are secure, don’t include asbestos, and don’t trigger most cancers.
J&J first used a company maneuver known as the “Texas two-step” to position its talc liabilities into a brand new subsidiary that then filed for chapter in 2021.
The chapter stopped the lawsuits from shifting forward towards J&J, though it didn’t file for chapter itself.
That and a second related try to resolve the litigation failed as courts dominated that J&J and its subsidiary was not in monetary misery so not eligible for chapter.
The corporate mentioned on Could 1 that it plans to pursue a third chapter as soon as it will get sufficient votes to help a $6.48 billion talc settlement.
Wednesday’s lawsuit seeks a ruling that the Texas two-step transaction was fraudulent, as a result of it was undertaken solely to shelter J&J’s property from the talc litigation.
Subsequent transactions, together with J&J’s spinoff of its shopper well being enterprise Kenvue, have been additionally fraudulent, in response to the lawsuit, which additionally seeks compensatory and punitive damages.
J&J says the deliberate third chapter for its unit might be totally different as a result of it’s going to have help from over 75% of the folks with talc-related claims.
The corporate has streamlined the proposed third chapter by reaching separate settlements with regulation corporations representing folks with mesothelioma, in addition to US states that alleged the corporate failed to warn consumers concerning the risks of its talc merchandise.
Litigation towards J&J resumed after its second chapter was dismissed. In current trials, J&J was ordered to pay $45 million in a mesothelioma case whereas successful an ovarian most cancers case.
