Johnson & Johnson’s talc business LTL Management LLC fights its second Chapter 11 filing against the objections of talc injury plaintiffs. LTL Management’s objection filed with New Jersey bankruptcy court states it will offer claimants a landmark $8.9 billion settlement in the largest mass tort bankruptcy ever.
Unprecedented Commitment Amid Opposition
The objection makes the stark distinction between the filing today and the prior Chapter 11 case dismissed. LTL Management is very pleased with the settlement commitment it received from its parent J&J, now more than four times the previous commitment. That promise, the debtor argues, is unprecedented in favor of talc-claims resolution.
While most plaintiffs’ firms are in favor of the plan, a minority of talc claimants’ law firms object. LTL Management denounces this “vocal minority” for trying to stop the bankruptcy, and accuses them of having more money for themselves than for their clients.
Ongoing Legal Challenges and Claims
This messy legal drama takes place as tens of thousands of people are making claims against J&J for the contamination of their talc with asbestos. But the talc claimants continue to insist that the products are safe, despite J&J’s statements about the safety of the products, and they challenge the legitimacy of LTL Management’s bankruptcy petitions.
During this battle, LTL Management hasn’t given up its battle for Chapter 11 protection and the $8.9 billion settlement offer. It will certainly be the court’s future ruling that will decide the course of one of the biggest mass tort bankruptcy trials ever.
Between law, politics and acrimony, the future of J&J’s talc business is at stake, billions of dollars on the line, and talc injury claimants’ justice on the front lines.
