Proposed Class Action Filed by Six Law Firms Alleging Series of Fraudulent Transfers by Johnson & Johnson in Talc Litigation
May 22 2024 - 11:05AM
Business Wire
Beasley Allen Attorney: Women are saying
‘enough is enough’
Women who previously filed lawsuits against Johnson &
Johnson for damages caused by its defective talc products have
filed a class action lawsuit in U.S. District Court in New Jersey
accusing J&J of engaging in a series of fraudulent maneuvers
designed to prevent cancer victims and their families from
receiving fair compensation for their health-related claims.
The lawsuit alleges three specific mileposts in Johnson &
Johnson’s fraudulent strategy:
- The creation in 2021 of a subsidiary known as LTL Management
through what is commonly referred to as a divisive merger or “Texas
Two-Step” to assume all talc-related liabilities. LTL then sought
bankruptcy protection. Twice, that legal strategy failed.
- The transfer of corporate assets from an existing consumer
health division into a new entity known as Kenvue. This spinoff
formed in 2022 sought to create an additional, unlawful shield for
J&J assets from litigation liability. In a recent case
involving Johnson & Johnson talc- and mesothelioma-related
claims, a jury in Chicago held Kenvue liable, among others.
- After the failure of the first LTL bankruptcy attempt, J&J
replaced the previous $61.5 billion funding agreement with one
capped at $29.9 billion, a transaction done without LTL receiving
equivalent value in return.
According to the lawsuit, these fraudulent steps to use the
bankruptcy courts to limit liability for talc claims resulted in
delays of scheduled trials or other forms of resolution to the
class for more than two years. The company has since announced its
intent to pursue a “pre-packaged” bankruptcy in a third attempt to
reduce liabilities.
The plaintiffs in the proposed class are represented by
attorneys with the law firms of Ashcraft & Gerel, Bailey
Glasser, Beasley Allen, Burns Charest, Golomb Legal, and Levin
Papantonio Rafferty.
“Johnson & Johnson is playing a dark game of chess with this
country's financial and judicial systems. With a net worth of
nearly $400 billion, this corporation has deliberately manipulated
assets to sidestep its obligations to ovarian cancer victims and in
so doing has robbed them of true and rightful justice,” says Mike
Papantonio of Pensacola, Florida-based Levin Papantonio
Rafferty.
“The bad faith that the courts found in ruling against J&J
in the two previous bankruptcies applies to every action the
company has taken during the past three years,” says Andy
Birchfield of Alabama-based Beasley Allen. “The individuals
bringing this class action are shining a bright light on the entire
series of dubious, unlawful and hypocritical ploys J&J has been
following, and they’re saying enough is enough.”
Reliable and consistent scientific studies show that regular
exposure to talc results in a 30% to 60% increased risk of ovarian
cancer. Despite corporate denials, it’s been shown that J&J’s
talc also contains asbestos. Asbestos causes mesothelioma and
ovarian cancer, both of which are often fatal. Evidence presented
in litigation against Johnson & Johnson reveals that the
company was aware that its product contained asbestos and continued
to sell it for another 50 years.
Last week, researchers from the National Institutes of Health
published a study in the Journal of Clinical Oncology which found a
significant and positive association between genital talc use and
ovarian cancer, with the highest risks observed in frequent and
long-term users. The study involved more than 50,000 women from the
Sister Study cohort study which examined the genetic predisposition
to hormone-related cancers.
“As the scientific record grows even stronger, J&J’s
repeated denials of the dangers of genital talc use, attempts to
shirk the company’s responsibility to cancer victims and abuse of
the bankruptcy system become even more egregious and tragic,” says
Michelle Parfitt of Ashcraft & Gerel.
The defendants in the proposed class action include both J&J
corporate entities and individual executives, including J&J
Chief Executive Officer Joaquin Duato and Kenvue Chief Executive
Officer Thibaut Mongon.
The case is Rebecca Love et al. v. LLT Management LLC et al.,
Case No. 3:24-cv-06320 filed in the U.S. District Court for the
District of New Jersey.
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version on businesswire.com: https://www.businesswire.com/news/home/20240522525674/en/
Media Contact: Mike Androvett mike@androvett.com
800-559-4534
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