Equitable & Efficient Resolution of All Current and Future Talc Claims
LTL Management LLC (LTL), a subsidiary of Johnson & Johnson responsible for holding and managing all liabilities related to Johnson & Johnson’s talc litigation, is pursuing a process to resolve all talc legal claims through a voluntary Chapter 11 bankruptcy filing.
As part of the Chapter 11 filing LTL is pursuing, under a court-supervised Chapter 11 plan voted on by plaintiffs, all current and future cosmetic talc claims will be fairly and fully paid.
This site is designed to provide more detailed information and background on LTL’s Chapter 11 proceedings, including third-party resources and legal filings related to the Chapter 11 case.
Current Status
In October 2021, LTL filed for Chapter 11 bankruptcy as a step to efficiently resolve claims in the cosmetic talc litigation in a manner that is equitable to all parties, including current and future claimants. Plaintiff lawyers challenged the filing with motions to dismiss the bankruptcy.
In February 2022, Judge Kaplan of the U.S. Bankruptcy Court for the District of New Jersey found LTL’s filing to be a valid, good faith filing under the Bankruptcy Code. Plaintiffs lawyers appealed this ruling to the United States Court of Appeals for the Third Circuit.
In January 2023, LTL’s bankruptcy was dismissed by a three-judge panel of the Third Circuit Court of Appeals. LTL appealed that ruling.
On March 22, 2023, LTL received an opinion from the Third Circuit denying its request for rehearing. LTL’s review petition raised significant concerns with the Third Circuit’s decision, both in how it applied the law to the facts of Judge Kaplan’s ruling, as well as the impracticality of the Third Circuit’s new legal standard.
LTL will immediately move for a stay of this opinion so it can seek review directly from the U.S. Supreme Court.
The Chapter 11 Process
Chapter 11 is a well-established legal process in the United States that allows a company to complete a financial or operational restructuring under the supervision of the Bankruptcy Court. As part of the process, companies must file a Plan of Reorganization, which outlines how money that is determined to be owed to various people or organizations will be paid. The Plan of Reorganization must be approved by a majority vote of eligible people and the Bankruptcy Court. This process results in a Plan of Reorganization that is fair and equitable for all stakeholders.
Why Chapter 11 Is the Best Path to Resolve the Talc Litigation
The Chapter 11 process provides a single venue for all parties to participate in the resolution process, resulting in the sort of comprehensive, fair and efficient settlement agreement that cannot be achieved through individual jury trials or negotiations.
While LTL is prepared to try every case, addressing each and every one of the talc cases on an individual basis could take thousands of years for each currently filed case to make its way to trial. Even then, there is no known, definitive outcome or guarantee that all cases would reach resolution. The United States tort system is not equipped to resolve thousands of cases quickly or efficiently.
The Chapter 11 process brings everyone to the table to negotiate an agreement, provides for the quickest and most efficient resolution for people who have legal claims related to talc and provides certainty for all parties.
Importantly, Chapter 11 allows people who may make a legal claim related to Johnson & Johnson’s talc in the future to participate in the resolution through an independent representative, called a “Future Claims Representative,” appointed by the Bankruptcy Court. That Court-appointed agent assesses the number of future claims and the total amount of fair compensation and determines how compensation should be distributed.
In his review of LTL’s Chapter 11 filing, Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey wrote the following:
“While this Court recognizes and appreciates the passion and commitment of the Committee members and every one of the attorneys advocating for the interests of the injured cosmetic talc claimants in this case, the Court simply cannot accept the premise that continued litigation in state and federal courts serves best the interest of their constituency. Many of these cases, both in the United States and abroad, have been pending for a half dozen or more years and remain years away from trial dates, not to mention the substantial delays they face in the inevitable appeals process. Notably, since 2014, there have been only 49 trials that have proceeded to verdict.”
- Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey in Memorandum Opinion, Case 21-03032-MBK, Doc 184 (2/25/22)
LTL’s legal proceedings are not an admission of wrongdoing. Decades of independent scientific testing have confirmed that Johnson & Johnson’s talc-based products are safe, do not contain asbestos and do not cause cancer. None of the talc-related claims against LTL have merit, nor are our products responsible for any illness. However, we believe that finding a way to resolve this litigation as quickly and efficiently as possible is in the best interests of claimants and all stakeholders.
For more information on the safety of our cosmetic talc, please visit www.FactsAboutTalc.com.
Johnson & Johnson and its other affiliates did not file for bankruptcy protection and continue to operate their businesses as usual.