Johnson & Johnson Faces New Class Action Over Talc Products

Johnson & Johnson (J&J) is confronting a new proposed class action seeking damages and medical monitoring for women diagnosed with or potentially developing cancer from using the company’s talc products, including baby powder.

The lawsuit, filed on Monday in New Jersey federal court, is the first to seek medical monitoring—regular testing meant to catch cancer early—on behalf of talc users.

Class Action Details:

The proposed class could encompass thousands of women but would exclude the over 61,000 individuals who have already filed personal injury lawsuits against J&J, claiming the talc contains cancer-causing asbestos. J&J maintains that its talc is safe, asbestos-free, and does not cause cancer.

Opposition to Johnson & Johnson Bankruptcy Proposal:

The law firms behind the new lawsuit oppose J&J’s plan to settle nearly all talc claims for $6.48 billion through a prepackaged bankruptcy.

They are also pursuing a separate class action to block the bankruptcy proposal. The bankruptcy plan requires support from 75% of talc claimants, and voting will conclude on July 26.

Erik Haas, J&J’s worldwide vice president of litigation, criticized the new lawsuit as “meritless.” He claims it aims to thwart the bankruptcy plan, which would benefit the plaintiffs’ lawyers more than their clients. He urged the plaintiff firms to let their clients decide on the settlement offer.

Plaintiff Lawyers’ Response:

Plaintiff lawyers, however, argue that the bankruptcy proposal does not sufficiently compensate their clients.

Chris Tisi, one of the lawyers behind the new lawsuit, emphasized the necessity of medical monitoring, stating that the bankruptcy plan’s “inadequate funding” fails to address the needs of women who could develop ovarian cancer from past baby powder use.

Previous Attempts to Resolve Talc Claims:

J&J has twice attempted to resolve current and future talc claims through bankruptcy, failing because courts found that the newly created subsidiaries did not meet the “financial distress” requirement to justify bankruptcy. This legal strategy, known as a Texas two-step, involves creating a subsidiary to absorb the company’s talc liability, which then declares bankruptcy to settle the cases.

Both the proposed settlement and the new class action concern claims that talc caused ovarian and other gynecological cancers, which constitute the majority of cases. A smaller number of claims involve mesothelioma, most of which have been settled.