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Johnson & Johnson: Legal Strategies and Controversies

The legal troubles surrounding Johnson & Johnson's baby powder date back over 50 years.

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The FDA’s 1971 asbestos inquiry

In the early 1970s, asbestos was discovered as one of the main causes of mesothelioma for workers who were tasked with mining talc, the mineral used to make talcum powder. But even though the miners were working with talc— not asbestos— the fibrous material was still showing up in samples of their lung tissue. This data led asbestos researchers to a foreboding question: since talc miners were developing mesothelioma because of asbestos inhalation, what did that mean for consumers who used talcum powder on their bodies?

Concerned by the researchers’ findings, the Food and Drug Administration (FDA) launched an inquiry into the presence of asbestos in talcum powder products in 1971. Major talcum powder manufacturers, including multinational corporation Johnson and Johnson, were asked to internally test all their talc products for asbestos. When Johnson and Johnson shared its results with the FDA, it insisted that there was no asbestos present in its talcum powder products. 

The truth uncovered about Johnson's baby powder

As the world would learn decades later, thanks to a 2018 Reuters investigation, test results from several independent labs revealed that Johnson and Johnson was being untruthful in its claim that its talcum powder products did not contain asbestos. One test, according to the Reuters report, found “rather high” levels of asbestos in Johnson’s baby powder.

By the time the report was published, thousands of women had already joined together to sue Johnson and Johnson for failing to warn its customers that its talcum powder products could cause cancer. Though J&J was already dealing with legal trouble, thanks to multiple lost verdicts in 2016, this investigation rapidly elevated the talcum powder lawsuit to new heights.

In 2022, Johnson and Johnson announced that it would stop producing all talcum powder products and replace them with a cornstarch formula.

Johnson & Johnson's bankruptcy plan

By 2021, Johnson and Johnson spent over $4.5 billion on legal fees, settlements, and plaintiff verdicts. The talcum powder lawsuit was getting pricey, so J&J decided to take drastic measures to reduce its liabilities. In October 2021, J&J created a subsidiary (also known as a child company) called LTL Management, transferred its remaining talcum powder claims to LTL, and then used LTL to file for Chapter 11 bankruptcy. This process is a controversial legal move called the “Texas Two-Step.”

By doing this, Johnson and Johnson took advantage of bankruptcy law to halt the progress of, at the time, over 40,000 talcum powder lawsuits. If J&J’s bankruptcy attempt had been allowed to move forward, then the company would have used a settlement trust to resolve all remaining talcum powder lawsuits at once and block any new claims from being filed. But, in January 2023, J&J’s bankruptcy filing was rejected by the U.S. Third Circuit Court of Appeals.

Not ready to give up on its Texas Two-Step strategy, Johnson and Johnson filed for bankruptcy with LTL again in April, this time pausing the legal proceedings of over 60,000 pending talcum powder lawsuits. For this attempt, J&J offered to pay $8.9 billion to resolve all current and future talcum powder lawsuits.

But in July 2023, Chief Judge Michael Kaplan rejected J&J’s second bankruptcy attempt for the same reason that the first attempt was dismissed. Neither J&J nor LTL Management were experiencing genuine financial distress, which is required to benefit from bankruptcy protection.

What does Johnson & Johnson plan to do next?

According to a Bloomberg report, J&J filed a request in December 2023 to move LTL Management from its birthplace in New Jersey to Austin, Texas under a slightly new name: LLT Management. Legal experts warn that Johnson and Johnson might be planning to use LLT Management to file for bankruptcy for a third time, but this time in Texas to try for a different outcome.

In May 2024, J&J proposed a new settlement worth $6.48 billion to settle all current and future claims, likely announcing it ahead of time to gather support from claimants before filing for bankruptcy again.

Join the talcum powder lawsuit

If you or a close family member developed ovarian cancer after using talcum powder within the last 10 years, there’s still time to get the justice you deserve.

Ready to file a claim ?

See if you qualify for the talcum powder lawsuit.

Referenced Articles

The references used by our writers at FreeLegalReviews.com are deemed to be from credible and reputable sources, including peer-reviewed studies, court records, non-profit organizations, government agencies, highly regarded news media, and legal subject experts. Before making any medical or financial decisions, please seek the opinion of a qualified professional.
  1. Girion, G. (2018, December 14). Johnson & Johnson knew for decades that asbestos lurked in its Baby Powder. Retrieved from https://www.reuters.com/investigates/special-report/johnsonandjohnson-cancer/
  2. Johnson & Johnson. (2022, August 11). Johnson & Johnson Consumer Health to Transition Global Baby Powder Portfolio to Cornstarch. Retrieved from https://www.jnj.com/media-center/press-releases/johnson-johnson-consumer-health-to-transition-global-baby-powder-portfolio-to-cornstarch#:~:text=As%20a%20result%20of%20this,business%20for%20long%2Dterm%20growth.
  1. Spector, M. et al. (2021, October 15). J&J puts talc liabilities into bankruptcy. Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/jj-unit-manage-talc-claims-files-bankruptcy-protection-2021-10-14/

  2. Johnson & Johnson. (2021, October 14). Johnson & Johnson Takes Steps to Equitably Resolve All Current and Future Talc Claims. Retrieved from https://www.jnj.com/media-center/press-releases/johnson-johnson-takes-steps-to-equitably-resolve-all-current-and-future-talc-claims

  3. Mann, B. (2022, April 2). Rich companies are using a quiet tactic to block lawsuits: bankruptcy. Retrieved from https://www.npr.org/2022/04/02/1082871843/rich-companies-are-using-a-quiet-tactic-to-block-lawsuits-bankruptcy

  4. Hals, T. et al. (2023, January 31). U.S. court rejects J&J bankruptcy strategy for thousands of talc lawsuits. Retrieved from https://www.reuters.com/legal/jjs-ltl-units-bankruptcy-dismissed-by-us-appeals-court-filing-2023-01-30/

  5. Johnson & Johnson. (2023, April 4). Johnson & Johnson Subsidiary LTL Management LLC (“LTL”) Re-Files for Voluntary Chapter 11 to Equitably Resolve All Current and Future Talc Claims. Retrieved from https://www.jnj.com/media-center/press-releases/ltl-update#:~:text=NEW%20BRUNSWICK%2C%20N.J.%2C%20APRIL%204,resolve%20all%20claims%20arising%20from

  6. Knauth, D. (2023, July 31). J&J effort to resolve talc lawsuits in bankruptcy fails a second time. Retrieved from https://www.reuters.com/legal/jj-effort-resolve-talc-lawsuits-bankruptcy-fails-second-time-2023-07-28/#:~:text=U.S.%20Bankruptcy%20Judge%20Michael%20Kaplan,in%20immediate%20%22financial%20distress.%22

  7. Feeley, J. (2024, January 22). J&J Sets Up 3rd Talc Bankruptcy Bid by Moving Unit to Texas. Retrieved from https://www.bloomberg.com/news/articles/2024-01-22/j-j-prepares-for-3rd-talc-bankruptcy-bid-by-moving-unit-to-texas

  8. Knauth, D. (2024, May 1). J&J advances $6.48 billion settlement of talc cancer lawsuits. Retrieved from https://www.reuters.com/legal/jj-advances-6475-billion-settlement-talc-cancer-lawsuits-2024-05-01/

  9. Spector, M. (2024, June 12). Cancer victims ask court to block J&J talc bankruptcy. Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/cancer-victims-ask-court-block-jj-talc-bankruptcy-2024-06-12/

About the Talcum Powder Lawsuit

Products at-risk
  • Johnson’s Baby Powder
  • Shower to Shower Body Powder
  • Gold Bond Body Powder
  • Cashmere Bouquet Talcum Powder
  • Other talcum powder products
Who's being sued?

Johnson & Johnson, Gold Bond, Colgate-Palmolive, and other defendants

Which illnesses are eligible ?
Further Reading
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