This marks J&J’s third attempt at using Chapter 11 to resolve talc claims. Two previous bankruptcy filings through another spinoff, LTL Management, were shot down by the Third Circuit Court of Appeals, which ruled that J&J was not in financial distress and had filed in bad faith.
A Turning Point in the Fight for Compensation
According to Lenard Parkins, counsel for a committee of supporting claimants, initial opposition to J&J’s first bankruptcy bid was widespread. But after the Third Circuit rejected the maneuver, a shift occurred.
“The parties said let’s dig deeper, let’s get to a deal,” Parkins said.
In August, J&J sweetened the pot, boosting the proposed settlement with an additional $1.1 billion earmarked for urgent claims and $650 million for plaintiffs’ attorneys.
“Trials almost always yield nothing,” Brown argued, dismissing a $4.7 billion 2019 Missouri verdict against J&J as an outlier. The proposed deal, she contended, was the best possible outcome for claimants.
The Vote Controversy: Was the Process Fair?
Despite Red River’s claim of overwhelming support, opposition remains vocal. Coalition of Counsel for Justice for Talc Claimants, a group of dissenting attorneys, called foul on the voting process.
