USA | In a significant win for thousands of women who have developed ovarian cancer allegedly linked to Johnson & Johnson’s talcum powder products, United States Bankruptcy Court Judge Christopher Lopez has rejected the company’s third attempt to avoid liability through bankruptcy proceedings.
The decision paves the way for claimants to proceed with jury trials in state courts and through the bellwether process in multidistrict litigation (MDL).
Andy Birchfield, of the Beasley Allen Law Firm, welcomed the outcome.
“This decision affirms what we have argued all along. J&J’s bankruptcy strategy was nothing more than a bad-faith manoeuvre to avoid full accountability,” Birchfield said.
“With this ruling, we are now moving forward without delay to trial, where our clients will finally have the chance to present their cases before a jury and obtain the justice they deserve.”
Judge Lopez’s ruling follows a years-long effort by Johnson & Johnson to use the bankruptcy system as a shield against legal claims. The company has filed for bankruptcy three times, under three different corporate entities – LTL, LLT and most recently Red River – despite being financially solvent and maintaining a market capitalisation nearing 400 billion US dollars.
Adam Silverstein, of Otterbourg P.C. and a lead attorney representing The Coalition of Counsel for Justice for Talc Claimants, said the court had acted in the interest of fairness.
“J&J tried to wear down victims through delay tactics, legal loopholes and backroom deals. Today’s ruling shuts down that abuse and ensures that real people, not corporate executives, will decide what justice looks like,” said Silverstein.
The decision follows strong opposition from the United States Trustee’s Office, Department of Justice lawyers, and attorneys for insurers including Travelers Insurance. They argued the bankruptcy attempt represented a blatant misuse of the system to evade responsibility for harm caused by the company’s products. Claimants’ counsel stated that this unified stance was critical in upholding accountability and preventing a precedent that might have allowed large corporations to misuse bankruptcy protections to escape liability.
Brian Glasser, founder of Bailey Glasser and co-lead counsel to the Coalition, said the ruling was a win for fairness and the integrity of the process.
“This ruling recognises that the plan put forth by Red River and J&J was fundamentally flawed, from the irregular and rushed voting procedures to the impermissible non-consensual third-party releases,” said Glasser.
"The court rightly concluded that the process was driven more by a desire to meet an arbitrary threshold than by a commitment to ensuring claimants’ rights.”
With the bankruptcy case dismissed, the legal fight now returns to the courts. Claimants will move ahead with jury trials in New Jersey federal MDL proceedings and state courts, including bellwether trials that will help determine liability and shape future compensation.
The lawsuits allege that Johnson & Johnson's talc-based products, including Baby Powder and Shower to Shower, caused ovarian cancer through prolonged use. In 2020, the company ceased sales of talc-based powders in North America and discontinued global sales in 2023.
Birchfield stressed that the legal teams would press for expedited proceedings, noting the long delays many affected women have already endured.
“We recognise that many women and their families supported the plan and the finality it promised. We want them to know that we will pursue everything possible to ensure that J&J finally recognises its responsibility and engages in fair settlement discussions,” said Birchfield.
“When J&J is ready to get serious about justly compensating all women with talc-related ovarian cancer, we will be there to meet them.”
Richard Golomb, of Golomb Legal and co-leader of the Coalition, also praised the court’s decision. “For too long, Johnson & Johnson has used delay tactics to sidestep accountability,” said Golomb.
“With this ruling, we move forward with the goal of ensuring that every woman harmed by J&J’s products has her day in court. The victims deserve justice, and this ruling brings us one step closer to that goal. As the court said, the voices of the claimants deserve to be heard.”
Birchfield also underscored the financial hardship many victims face.
“Many of our clients are hundreds of thousands of dollars in debt due to medical bills and insurance liens,” he said.
“Any fair compensation must consider not only the suffering endured but also the financial devastation these women have experienced. That is what we will fight for in court.”
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