Proposed Class Action Filed by Six Law Firms Alleging Series of Fraudulent Transfers by Johnson & Johnson in Talc Litigation
The lawsuit alleges three specific mileposts in Johnson & Johnson’s fraudulent strategy:
- The creation in 2021 of a subsidiary known as LTL Management through what is commonly referred to as a divisive merger or “Texas Two-Step” to assume all talc-related liabilities. LTL then sought bankruptcy protection. Twice, that legal strategy failed.
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The transfer of corporate assets from an existing consumer health division into a new entity known as Kenvue. This spinoff formed in 2022 sought to create an additional, unlawful shield for J&J assets from litigation liability. In a recent case involving
Johnson & Johnson talc- and mesothelioma-related claims, a jury inChicago held Kenvue liable, among others. -
After the failure of the first LTL bankruptcy attempt, J&J replaced the previous
$61.5 billion funding agreement with one capped at$29.9 billion , a transaction done without LTL receiving equivalent value in return.
According to the lawsuit, these fraudulent steps to use the bankruptcy courts to limit liability for talc claims resulted in delays of scheduled trials or other forms of resolution to the class for more than two years. The company has since announced its intent to pursue a “pre-packaged” bankruptcy in a third attempt to reduce liabilities.
The plaintiffs in the proposed class are represented by attorneys with the law firms of
“Johnson & Johnson is playing a dark game of chess with this country's financial and judicial systems. With a net worth of nearly
“The bad faith that the courts found in ruling against J&J in the two previous bankruptcies applies to every action the company has taken during the past three years,” says
Reliable and consistent scientific studies show that regular exposure to talc results in a 30% to 60% increased risk of ovarian cancer. Despite corporate denials, it’s been shown that J&J’s talc also contains asbestos. Asbestos causes mesothelioma and ovarian cancer, both of which are often fatal. Evidence presented in litigation against
Last week, researchers from the
“As the scientific record grows even stronger, J&J’s repeated denials of the dangers of genital talc use, attempts to shirk the company’s responsibility to cancer victims and abuse of the bankruptcy system become even more egregious and tragic,” says
The defendants in the proposed class action include both J&J corporate entities and individual executives, including J&J Chief Executive Officer
The case is
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