Johnson & Johnson Clears Key Hurdle in $65 Billion Lawsuit Settlement
JJ Gets Plaintiff Backing for $65 Billion to Resolve Lawsuits Over Baby Powder
Johnson & Johnson (J&J) has cleared a significant hurdle in advancing its $65 billion plan to settle thousands of lawsuits alleging that its baby powder caused cancer.
According to sources, J&J has met the plaintiff voting threshold necessary to approve the proposed settlement, which would resolve approximately 40,000 cases.
Overview of the Bankruptcy Proceedings
In October 2021, J&J created a subsidiary called LTL Management to take on the liabilities of the lawsuits and filed for Chapter 11 bankruptcy.
This move was met with resistance from plaintiffs who argued that it was an attempt to evade responsibility.
In May 2023, an appeals court denied J&J's bankruptcy plan for the third time, citing concerns about the fairness of the settlement to plaintiffs.
Key Terms of the Settlement
Under the terms of the proposed settlement:
- J&J would establish a $65 billion trust to compensate victims.
- Plaintiffs would receive payments based on the severity of their injuries.
- J&J would be released from liability in the lawsuits.
Plaintiff Support for the Settlement
Despite initial resistance, a majority of plaintiffs have now voted in favor of the settlement.
This support is likely due to the fact that many plaintiffs are elderly or ill and are concerned about the length and uncertainty of the legal process.
Conclusion
The $65 billion settlement is a significant step forward in resolving the long-running litigation over J&J's baby powder.
It remains to be seen whether the settlement will be approved by the bankruptcy court, but the plaintiff support suggests that a resolution is likely.
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