Johnson & Johnson’s bitter negotiations to resolve thousands of lawsuits over its talc products, which are worth $6.5 billion, have run into a wall as several plaintiffs have not bowed to their terms.
The suits allege that J&J’s baby powder and other talc products were contaminated with asbestos, a known carcinogen, and have caused customers to develop mesothelioma, lung cancer, and ovarian cancer.
J&J has agreed to settlements with most of the plaintiffs, but there are still some that will make this case difficult for the company to close and prevent catastrophic expenses.
What J&J’s Talc Settlement Will Cost The Bankers?
The J&J drive to cling everything together as a lump sum arises out of the ghost of multibillion-dollar verdicts in thousands of Johnson & Johnson talcum powder cases alleging that their products are causing cancer. A combined bankruptcy deal would tally liability and standardize claims, but holdout claimants who refuse to sign up to the offer of settlement risk further court battles.
Outside the safety net of bankruptcy, J&J may continue to be sued by people who were not covered by the settlement agreement and by future plaintiffs. It is a huge investment for J&J, who already has won large jury verdicts in previous talc cases. This threat of a long legal battle is why J&J decided on the Texas two-step bankruptcy plan to reduce the debt burden and put a stop to this long-running litigation in the first place.
Challenges Posed by Holdout Claimants
J&J is shithole when it comes to dealing with holdout claimants. These plaintiffs, who are unhappy with the settlement, might undo the company’s efforts to close all of the cases. If J&J cannot get any kind of deal from most or all of the holdouts, the company could enter a long legal fight, ongoing litigation costs, and more big verdicts. The fact that such holdout talks are opaque is one thing that may change the direction of the company’s future legal strategy.
And holdouts show something about the wider problems of the settlement talks involving the hassle of coming to an agreement that works for all sides. Each victim makes a decision to pay depending on his own specific situation, such as how sick he or she is, whether they can get more money if they continue to litigate, and whether a settlement would be faster. That relationship makes the settlement negotiations very complex and potentially messy for J&J.
The Broader Effect on a Future Generation of Plaintiffs.
Perhaps the most important consequence of the negotiations is for future plaintiffs who might file lawsuits related to asbestos-laced talcum powder products. If not all plaintiffs are covered by the settlement, any claimants who were not included in the settlement are still allowed to pursue J&J. The outcome could increase the number of lawsuits, making it more difficult for J&J to settle the talc lawsuit.
Leaving room for other claims means more legal troubles can erupt in the future, and J&J’s talc case is not yet finished. The ambiguity is also a continuous risk to J&J’s bottom line and corporate image, both of which are severely harmed by the litigation.
Patients Seeking Legal Counsel
And if you or someone you know developed an asbestos disease such as mesothelioma or lung cancer because you used talc, the experienced lawyers of Mesowatch can help. We place you in contact with the nation’s most reputable asbestos lawyers for a free case evaluation so that you can better understand your legal rights and your available compensation such as whether you should accept the Johnson & Johnson talc settlement or pursue a personal injury claim.
Call our asbestos exposure and mesothelioma attorneys 24 hours a day, 7 days a week for a free case evaluation today, and let our lawyers go to work on your behalf to receive the money you deserve. That Johnson & Johnson is still in negotiations with the holdout plaintiffs in the $6.5 billion talc settlement represents a turning point for the company and for those who suffered from asbestos-containing talcum powders.
Even as the company negotiates the settlement, holdouts and possible litigation keep the option open for further lawsuits. To those who have been exposed to asbestos relating to talc products, now is the time to get legal advice and do your homework.
