Johnson & Johnson is using several legal strategies to contain the financial fallout from Baby Powder lawsuits
The company is trying to combine thousands of plaintiffs into one trial before a federal judge in Delaware
Monday, April 22, 2019 - With thousands of lawsuits already filed and no doubt thousands more pending, Johnson & Johnson is naturally looking to limit their liability as well as keep their hard-earned reputation intact. An interesting article in Bloomberg the other day highlighted this fact.
A few months ago, Johnson & Johnson's talc supplier Imreys Inc. filed for bankruptcy protection in order to put a lid on what was looking like billions of dollars in legal liabilities due to the finding of asbestos having potentially contaminated the talc they had sold to Johnson & Johnson. Chapter 11 bankruptcy was sought as legal protection that enabled multiple plaintiffs that had filed suit against them to be lumped into one and heard in Federal Court in order to seek a settlement that Imreys would actually be able to pay and survive as going concern afterward. Johnson & Johnson is seeking a similar remedy to help in weathering the storm of lawsuits against them.
Johnson & Johnson is not filing for bankruptcy but has cited "a special bankruptcy law provision allows Imerys creditors with significant financial ties to the talc miner to make the request to promote the expeditious resolution of claims" according to the filing reported by Bloomberg. With over 14,000 very similar claims against Johnson & Johnson already filed the company points out that "because the claims raise common questions of fact, law, and science, the current nationwide" round of pre-trial information exchanges "is duplicative, unpredictable, and wasteful," J&J said in court papers." Johnson & Johnson attorneys stated that they were not seeking to add any trials that were already underway nor were they seeking to include verdicts against the company that was under appeal. National talcum powder cancer attorneys continue to offer a no obligation free consultation in the United States for those thinking about filing a lawsuit claim against Johnson and Johnson.
One such case it should be noted is the newsworthy $4.69 billion jury award to 22 women who alleged that Johnson's Baby Powder contributed to their ovarian cancer. That verdict and award are under appeal on the grounds that the 22 women were of different physical backgrounds and had different life experiences that could have put them in contact with other sources of chemicals or materials that could have caused their cancer and that they should each be tried separately. Johnson & Johnson won its most recent jury trial and simultaneously settled 3 other cases for an undisclosed amount of money.
In spite of the fact that an avalanche of lawsuits has been filed against Johnson & Johnson (JNJ), many that claim that Johnson's Baby Powder contains asbestos and causes cancer, the company's overall financial performance has barely hiccuped. Market Watch just reported that JNJ "reported profit and revenue in the first three months of 2019 that beat analysts' estimates." The company's sales increased by 0.1% but were offset by one-time adjustments such as allowances for future legal fees. JNJ's earnings per share increased from $2.06 to $2.10. Baby powder sales make up only a small percentage of Johnson & Johnson's overall revenue, and the adverse publicity appears to be contained to their cosmetics line.
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