Last fall, nearly 60,000 talcum powder claims were put on-hold after Johnson & Johnson—for the third time—attempted to file for Chapter 11 bankruptcy with its subsidiary company. Though J&J tried to bribe lawsuit participants with an $8 billion settlement, the U.S. Department of Justice filed a motion to dismiss its bankruptcy attempt, leading to all claims against J&J being frozen until a later trial in 2025.
It took longer than expected for the trial to get up-and-rolling, but U.S. Bankruptcy Judge Christopher Lopez eventually began hearings in February 2025. The trial concluded on March 31, 2025, and Johnson & Johnson’s third bankruptcy attempt was officially rejected.
Does that mean claims are no longer frozen?
Yes! All ongoing claims have been resumed, and lawyers are once again accepting new claims for survivors who were diagnosed with cancer after using a talcum powder product.
Because Johnson & Johnson’s bankruptcy plan was dismissed, the proposed $8 billion settlement that claimants voted on last year has now been cancelled. This may seem like a blow to lawsuit participants, but the court has been slowly pressuring J&J to negotiate a legitimate settlement since the trial ended, and legal experts believe this resolution will likely be much larger than the original amount.
Why was J&J’s bankruptcy attempt rejected?
According to Judge Lopez’s ruling, Johnson and Johnson’s bankruptcy plan was ultimately dismissed for a number of concerns.
1. The voting procedure for J&J’s $8B settlement plan was flawed.
In his opinion, Judge Lopez stated that “tens of thousands” of votes appeared to be submitted by law firms without their clients’ approval. Johnson & Johnson also pushed an “unreasonably short voting time” during the procedure, which Judge Lopez claims was done to make at least 75% of lawsuit participants agree to J&J’s settlement proposal “at any cost.”
2. The formation of J&J’s subsidiary was an “abuse of the bankruptcy system.”
As a reminder, Johnson & Johnson’s strategy was to create a subsidiary to transfer its talcum powder claims into, and then file that company for bankruptcy protection. If its Chapter 11 filing had been approved, this would have allowed J&J to resolve its talcum powder claims all at once under a different company name—protecting itself from liability and limiting how much money would’ve been available for lawsuit participants.
But Judge Lopez saw straight through this attempt, noting that Johnson & Johnson “did not belong in bankruptcy court” because it was never in any danger of financial distress, even with its subsidiary.
3. J&J’s plan would have released claims against its affiliates & retailers.
According to Judge Lopez, J&J’s bankruptcy strategy would have also resolved talcum powder claims filed against several other third-party companies that sold its products, even without those companies being in financial distress. Because nonconsensual third-party releases aren’t allowed in bankruptcy law, this only added another factor into Judge Lopez’s final decision.
“While the Court’s decision is not an easy one, it is the right one.”
The future of the talcum powder lawsuit
Trials have already resumed since J&J’s bankruptcy plan was dismissed. In August, a man was awarded $42.6 million after being diagnosed with mesothelioma—just weeks after a woman was awarded $8 million for her own mesothelioma diagnosis.
More and more cancer survivors are demanding that Johnson & Johnson finally face accountability for refusing to warn users about the risks of using talcum powder, and the lawsuit has recently exploded with new claims. If the court continues to pressure J&J into reaching a fair settlement for all the victims who’ve been affected, then a massive talcum powder settlement could soon be headed our way.
File a talcum powder claim
Lawyers are once again accepting talcum powder claims, so if you or an immediate family member were diagnosed with cancer after using talc-based baby powder, you may be entitled to significant compensation from the lawsuit.
Ready for a free case review? Take our online talcum powder eligibility evaluation to see if you may be eligible to file a claim.
