Federal Judge Rejects Johnson & Johnson Bankruptcy Strategy, Paving Way for Talc Victims to Seek Justice in Trial Courts

Court ruling marks major victory for ovarian cancer patients as legal battle shifts to multidistrict litigation

HOUSTON--(BUSINESS WIRE)--In a resounding victory for thousands of women who have suffered from ovarian cancer linked to Johnson & Johnson’s (NYSE:JNJ) talcum powder products, U.S. Bankruptcy Court Judge Christopher Lopez has rejected the company’s third attempt to shield itself from liability through bankruptcy.

The ruling clears the way for claimants to seek speedy jury trials in state courts and through the bellwether process in multidistrict litigation (MDL).

“This decision affirms what we have argued all along — J&J’s bankruptcy strategy was nothing more than a bad-faith maneuver to avoid full accountability,” said Andy Birchfield of the Beasley Allen Law Firm. “With this ruling, we are now moving forward without delay to trial, where our clients will finally have the chance to present their cases before a jury and obtain the justice they deserve.”

Judge Lopez’s ruling follows years of J&J’s attempts to manipulate the bankruptcy process to force victims into an inadequate settlement. J&J has filed for bankruptcy three separate times in three different venues and has used three different company names, including LTL, LLT, and this latest, Red River. The company pursued bankruptcy protections despite being financially solvent and having a market capitalization approaching $400 billion.

“This case has always been about fairness,” said Adam Silverstein from Otterbourg P.C., one of the lead attorneys representing The Coalition of Counsel for Justice for Talc Claimants, which opposed the bankruptcy. “J&J tried to wear down victims through delay tactics, legal loopholes, and backroom deals. Today’s ruling shuts down that abuse and ensures that real people — not corporate executives — will decide what justice looks like.”

The ruling comes after vigorous opposition from the U.S. Trustee’s Office, lawyers from the Department of Justice, and attorneys representing Travelers Insurance, all of whom argued that J&J’s maneuver was a blatant abuse of the bankruptcy system. Attorneys representing the claimants say this combined effort was instrumental in holding J&J accountable and preventing a dangerous precedent that could have allowed wealthy corporations to manipulate the bankruptcy process and use its protections to escape liability for harmful acts.

“The Court’s decision is a victory for fairness and the integrity of the bankruptcy process,” said Brian Glasser, founder of Bailey Glasser and co-lead counsel to the Coalition. “This ruling recognizes that the plan put forth by Red River and J&J was fundamentally flawed, from the irregular and rushed voting procedures to the impermissible nonconsensual third-party releases. The court rightly concluded that the process was driven more by a desire to meet an arbitrary threshold than by a commitment to ensuring claimants’ rights.”

With the bankruptcy case dismissed, the legal fight now shifts to trial courts and juries, including the MDL in New Jersey federal court and the New Jersey state courts, where claimants will pursue bellwether trials to establish liability and set the stage for fair compensation. Those claims allege that J&J’s manufacturing and deceptive marketing of the talc-based Johnson & Johnson’s Baby Powder and Shower to Shower brands caused ovarian cancer in tens of thousands of women. In 2020, the company announced it would no longer sell talc-based powders in North America, then ended all sales worldwide in 2023.

Mr. Birchfield emphasized that his team will push for expedited proceedings to ensure that affected women, many of whom have been waiting for years, do not face further delays.

“We recognize that many women and their families did support the plan and the finality it promised. We want them to know that we will pursue everything possible to assure that J&J will finally recognize its responsibility and engage in fair settlement discussions,” Mr. Birchfield said. “When J&J is ready to get serious about justly compensating all women with talc-related ovarian cancer, we’ll be there to meet them.”

Richard Golomb of Golomb Legal, co-leader of The Coalition, also praised the decision. “For too long, Johnson & Johnson has used delay tactics to sidestep accountability,” he said. “With this ruling, we move forward with the goal of ensuring that every woman harmed by J&J’s products has her day in court. The victims deserve justice, and this ruling brings us one step closer to that goal, As the court said, the voices of the claimants deserve to be heard.”

Mr. Birchfield also highlighted the financial burden many victims have faced. “Many of our clients are hundreds of thousands of dollars in debt due to medical bills and insurance liens. Any fair compensation must consider not only the suffering endured but also the financial devastation these women have experienced. That is what we will fight for in court,” he stated.