BlogNews & JudgementJohnson & Johnson (J&J) Bankruptcy Case Summary - Know Facts Here
Johnson & Johnson (J&J) Bankruptcy Case Summary – Know Facts Here
By Legal Thirst
Pic Credits Canva
You all might have seen the Johnson & Johnson (J&J) Baby advertisement about the baby products and their baby care range is one of the best brands available in market. The company is under some tensed situations nowadays. Know why this all happens.
Johnson and Johnson started manufacturing baby talcum powder on the need of 11th hour when scientific and doctors in the late 1800s realized the use of importance of sterilized medical equipment to prevent infection. In 2018 company earned massive revenue of $81.6 Billion worldwide from the sale of baby talcum powder, but just a year ago, when it started facing a huge number of case laws.
Controversy around Baby Powder Asbestos
Asbestos is heat resistant and versatile, while talcum powder is valued as a natural lubricant that absorbs moisture. For much of the 20th century, companies promoted asbestos and talc as harmless, naturally occurring wonder minerals. Some incidents state that the corporate sector has manipulated the facts, medical reports, and instances which sates the negative aspects of using od Asbestos.
J&J Dentition
J&J has always denied publicly that the cancer is caused by its talcum powder product as much like any company will do who is using Asbestos in making of their product. Some documents unsealed in 2017 shows that Johnson & Johnson executives were aware of the liabilities and effect of usage of Asbestos from 1970. Despite some of J&J company staff considering a switch of baby powder's main ingredient from talc to corn starch to avoid liability, the company never stopped selling talcum powder.
Juries now started passing orders against J&J (Johnson & Johnson) company for causing cancer by asbestos in its products.
The bankruptcy of J&J Supplier:
Imerys Talc America, one of the key suppliers of talc to J&J has filed in wake of Bankruptcy in February 2019 under Chapter 11 of the Bankruptcy Act. The need to file for Bankruptcy was raised due to a massive raise of multi-millionaire dollar case lawsuits causing cancer in ovaries and mesothelioma from its talc.
Around 90% of cases show that asbestos exposure is one of the causes of mesothelioma. The products which were used by the women for personal hygiene come as the suspected linkage of baby powder in the cause of ovarian cancer.
Asbestos Enquiry
A letter was sent to the CEO of J&J (Johnson & Johnson) asking for documentation of past test results of asbestos contamination in company talc's product by Washington Sen. Patty Murray, D-Wash.
Reuters News Service investigative report shows that J&J (Johnson & Johnson) Company was holding some secretive document of Asbestos in its products for ages from FDI. This report plays a vital role while deciding the Judgement against J&J.
Asbestos Talc Lawsuits and Mesothelioma Lawsuits Against J&J
Pharmaceutical giant Johnson & Johnson set aside $3.9 billion for talc-related litigation, according to a regulatory filing with the Securities and Exchange Commission in Washington D.C.
Bankruptcy Situation:
In June 2019 J&J has paid $2.1 billion compensation to women who got ovarian cancer from its talc's product on the order of the Missouri Appeal Court. Moreover, the company has paid up $ 4.69 Billion huge amount to 22 women and their families in 2018.
J&J has recently announced that it will form a subsidiary, LTL management who will now take over the lawsuits against the J&J (Johnson & Johnson) for its talc product. J&J will provide and set up a $2 billion trust who will settle disputes.
John Kim, the chief legal officer of LTL, said in a statement that with the financial backing from the parent company, the subsidiary was "confident all parties will be treated equitably during this process."
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