In the climactic conclusion to a week-long legal battle, attorneys representing Johnson & Johnson’s bankrupt talc unit delivered their final defense of its Chapter 11 filing before a New Jersey bankruptcy judge on Friday. Gregory M. Gordon of Jones Day, representing LTL Management LLC, underscored the urgent need for bankruptcy proceedings, arguing that dismissal would plunge most talc claimants into a quagmire of unacceptable delays and uncertainty within the tort system.
Gordon fervently advocated for the funding agreement binding J&J to cover any settlements of the 38,000 existing talc claims, insisting it offered the best chance for claimants to receive timely and equitable recoveries. “Most of them, if this case goes back to the tort system, will receive nothing,” Gordon emphasized, painting a stark picture of potential decades-long delays and dwindling assets.
The impassioned pleas marked the culmination of a trial marred by heated exchanges and strategic maneuvering. LTL’s Chapter 11 filing in October, orchestrated through Texas’s divisive merger laws, split the subsidiary Johnson & Johnson Consumer Inc., setting the stage for a legal showdown with far-reaching implications.
As the courtroom drama unfolded, Gordon highlighted recent verdicts against J&J, warning of the lottery-like outcomes awaiting claimants subjected to the vagaries of the tort system. Witnesses for LTL Management emphasized the glacial pace of tort litigation, suggesting that a resolution could take centuries to materialize.
In a bid to assuage concerns, Gordon stressed LTL’s readiness to enter mediation immediately, seeking an expedited agreement to address both existing and future liabilities. However, the talc committees, representing claimants alleging injuries from J&J talc products, remained steadfast in their argument that the parent company possessed sufficient resources to settle claims outside of bankruptcy.
The courtroom reverberated with impassioned arguments as the parties debated LTL Management’s request for a preliminary injunction, pausing litigation against non-debtor entities. Cullen Speckhart of Cooley LLP, representing the mesothelioma committee, rebuffed attempts to extend the automatic stay of litigation, citing a lack of identity of interest between J&J and LTL.
As Judge Kaplan pledged to render a verdict, the fate of LTL’s bankruptcy hung in the balance, encapsulating the high-stakes drama that has captivated legal observers nationwide. With tensions running high and stakes soaring, the legal battle over J&J’s talc unit epitomizes the intersection of corporate strategy and legal maneuvering in the pursuit of justice.
