Is Johnson & Johnson’s Bankruptcy Filing Fraudulent?
Johnson & Johnson (J&J) is facing billions of dollars worth of lawsuits claiming its asbestos-contaminated baby powder caused cancer. The company denies it and is using bankruptcy law to try to impose a settlement on plaintiffs. A former head of the Food and Drug Administration (FDA) testified in February that contrary to what it stated in court filings, the company knew its products had asbestos fibers.
Attorneys Claim J&J Mislead Plaintiffs Who Voted for a Proposed Settlement
David Kessler, who led the FDA for more than six years, testified in a Houston bankruptcy court as a paid expert witness for those opposing J&J’s $9 billion settlement plan, Bloomberg reports. He said his review of evidence developed during more than 15 years of litigation after he left the FDA shows the company’s bankruptcy disclosures don’t accurately state what they knew for decades. If Judge Chris Lopez finds the filings are misleading, he could reject the plan.
Lopez will decide if J&J manipulated a vote by 93,000 claimants by providing them false information and whether the profitable company is trying to benefit from Chapter 11 rules meant to cover financially distressed businesses. J&J is being sued by plaintiffs claiming asbestos in the company’s baby powder caused their cancers.
J&J doesn’t deny its profitability. It states the bankruptcy process is the most efficient way to address these lawsuits. It also claims the vote was held fairly and impartially.
What Did J&J Know and When Did They Know It?
Kessler stated that internal company documents starting in 1971 “certainly showed” tests that found trace asbestos amounts in some talc intended for use in the powder.
J&J’s attorney, Alli Brown, stated the company denies being dishonest and never changed its position that its baby powder is safe and doesn’t contain asbestos. Kessler testified that the company tried to hide asbestos contamination for forty years.
J&J brought up that the FDA repeatedly concluded that the company’s talc powder products didn’t contain asbestos and never required the company to put a warning label on them. Kessler stated the agency found the product safe because the company hid its knowledge of asbestos contamination.
He testified that the FDA started taking action in 2019 after an internal 2017 J&J memo discussing asbestos became public. As a result, the FDA found contamination. Kessler stated that J&J based its safety claims on results from equipment that was not sensitive enough to find asbestos.
J&J’s two earlier attempts at bankruptcy were dismissed by the courts in which they were filed. The company has lost appeals seeking to reinstate the bankruptcies.
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If you have mesothelioma or another type of cancer and used cosmetic talcum powder, you may be entitled to compensation for your lost wages, medical expenses, and pain suffering. Let us be your boots on the ground seeking maximum compensation for you and your family.
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