A U.S. judge denied Johnson & Johnson’s (J&J) $10 billion bankruptcy plan to resolve thousands of lawsuits alleging that its talc-based products cause ovarian cancer. This marks the third time that J&J’s attempt to settle talcum powder lawsuits through a subsidiary’s bankruptcy has failed.
The company faces over 90,000 lawsuits alleging its baby powder and other talc-based products contained asbestos and can cause ovarian cancer. While J&J continues to insist its products are safe, the company recalled 33,000 bottle of talcum powder in 2019 after detecting trace amounts of asbestos and then discontinued North American sales of its talc-based baby powder in May 2020. It later ceased sales of talcum powder worldwide in 2022.
Judge Criticizes J&J’s Bankruptcy Plan
On March 31, Judge Christopher Lopez in the Southern District of Texas ruled that J&J’s subsidiary, Red River Talc, LLC, does not qualify for bankruptcy and criticized the proposed resolution for lacking sufficient support from affected claimants. J&J created Red River Talc LLC in 2024 for the sole purpose of absorbing its talcum powder-related liabilities and filing a pre-packaged bankruptcy plan to resolve all current and future talcum powder personal injury lawsuits.
Judge Lopez also criticized the bankruptcy plan for shielding non-bankrupt entities, including retailers that sold J&J products and Kenvue, a consumer health business that J&J spun off in 2023.
“While the Court’s decision is not an easy one, it is the right one,” Lopez wrote.
Lopez focused much of his opinion on the votes gathered by J&J prior to filing the bankruptcy, highlighting significant flaws in ballots cast both in favor of and against the plan. In June 2024, the company solicited a claimant vote for a plan outlining the resolution of all talcum powder lawsuits through a third bankruptcy. In September, J&J announced that this proposed resolution had received the approval of over 75% of claimants, meaning it had sufficient votes to proceed with a third bankruptcy filing.
While J&J claimed to have secured 90,000 votes, with 83% support from plaintiffs, Lopez argued that “at least half should not be counted.” He noted that some lawyers voted on behalf of their clients without clear authorization, while others claimed to have obtained client consent but failed to provide proof of communication.
According to Lopez’s opinion, J&J “unnecessarily rushed” the voting process, and plaintiffs’ attorneys testified that they were pressured to vote on behalf of their clients rather than allowing them to vote directly.
Opponents of the deal—including attorneys representing cancer victims and the Office of the U.S. Trustee—contended that the third bankruptcy filing, like the previous two, should be dismissed because J&J is not experiencing “financial distress.” They argued that a wealthy corporation like J&J should not use bankruptcy as a shield to prevent cancer victims from seeking justice in court.
J&J stated it would not appeal but also refused to settle, opting instead to fight the lawsuits in court. Plaintiffs’ attorneys accused J&J of using bankruptcy as a bad-faith strategy to avoid full accountability. The rejected reorganization plan aimed to prevent future lawsuits and offered alleged payouts ranging from $75,000 to $150,000 per claimant.
Minnesota Talcum Powder Attorneys
The Minneapolis Talcum Powder attorneys at Goldenberg Lauricella continue to fight for women who have been diagnosed with ovarian cancer after using J&J’s talcum powder. Judge Lopez’s decision allows J&J’s victims to seek justice in the proper venue: the courtroom in front of a jury of peers. We are continuing to evaluate new talcum powder cases. Contact us today at 1-800-903-1643 for a free case consultation.