Johnson & Johnson Returning to Tort System to Litigate Red River Talc Claims; Not Pursuing Appeal of Bankruptcy Court Order Denying Plan Confirmation

Relevant Document:
Press Release
In light of Judge Christopher Lopez’s denial earlier today of Johnson & Johnson subsidiary Red River Talc LLC’s request to confirm its proposed prepackaged bankruptcy plan, Johnson & Johnson announced in a press release that the company “will return to the tort system to litigate and defeat these meritless talc claims” rather than pursue “a protracted appeal.”

The company asserts that it “has no intent to settle or pay plaintiff lawyers on such meritless claims” and as such, will reverse approximately $7 billion from amounts previously reserved for the bankruptcy resolution.

Erik Haas, Worldwide Vice President of Litigation for Johnson & Johnson, said: “The Court has unfortunately allowed a couple of law firms with financially conflicted motives, who have conceded they have not recovered a dime for their clients in a decade of litigation, to defeat the overwhelming desire of claimants. As we have repeatedly stated, in the absence of plan confirmation, we will vigorously present our case in the tort system, starting with the adjudication of the motions pending in the Multi-District Litigation to exclude plaintiffs’ experts and to disqualify the lead counsel for its unethical breaches. In view of the learnings from the bankruptcy case, we are more confident than ever in our position in the tort system.” Haas notes that the company prevailed in 16 of 17 ovarian cases tried in the last 11 years and “will devote our efforts to defeating these fake claims.”

The company adds that it “has already made great strides in resolving its talc litigation by settling 95% of filed mesothelioma lawsuits, concluded all State consumer protection claims, as well as all talc-supplier disputes.”