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A federal appeals court has rejected Johnson & Johnson’s attempts to move thousands of lawsuits filed over injuries caused by its talc-based products into bankruptcy proceedings.

The ruling, issued by the Third U.S. Circuit Court of Appeals on Monday January 30th, prevents J&J subsidiary LTL Management LLC from shifting over 40,000 lawsuits out of trial courts and into the bankruptcy system. J&J created LTL as part of a controversial strategy, known as the “Texas Two-Step,” to protect the bulk of J&J’s corporate assets from legal claims and skirt some of its talc liabilities, which may total in the billions of dollars. On March 22, 2023, all 11 judges of the U.S. Court of Appeals for the Third Circuit unanimously denied a motion for rehearing filed by LTL, the J&J subsidiary that was created for the improper bankruptcy filing.

Now that the Third Circuit Court of Appeals has rejected J&J’s talc powder bankruptcy scheme, the cases will return to the jury system where they belong.

A victory for J&J Talc Lawsuit Plaintiffs

Monday’s ruling is a significant victory for thousands of plaintiffs who have filed claims against J&J over allegations that its talc-based products have caused cancer and other health complications.

At Levy Konigsberg, our trial lawyers represent many plaintiffs in the ongoing J&J talc litigation and have fought for the dismissal of this bankruptcy for over a year. This ruling will now allow our clients to move forward with their talc cancer cases and pursue the justice and compensation they rightfully deserve.

As discussed on our blog, J&J has already lost a string of cases involving consumers who developed mesothelioma and cancer linked to their use of talc-based products. This includes a $37 million verdict obtained by Levy Konigsberg and co-counsel, and a $750 million dollar punitive damages verdict obtained by Levy Konigsberg and co-counsel in New Jersey.

Levy Konigsberg is a nationally recognized trial practice with a reputation for taking on high-stakes claims against some of the country’s largest and most powerful corporations. Our trial lawyers are actively litigating J&J talc lawsuits and will continue to fight for our clients as these cases move forward in the trial court system. Learn more about our talcum powder lawsuits or contact us to discuss a potential case.

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