FAQ

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.

On March 22, 2023, we received an opinion from the Third Circuit denying our request for rehearing.

Our 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.

We will immediately move for a stay of this opinion so we can seek review directly from the U.S. Supreme Court.

Importantly, this was not a ruling on the merits of the cosmetic talc claims, but rather on whether LTL’s Chapter 11 filing can move forward.

We fully agree with the Bankruptcy Court that the restructuring process is the best path forward to reach a global resolution of the cosmetic talc litigation. Moreover, the Bankruptcy Court’s ruling followed a five-day evidentiary hearing, and the Third Circuit ruling does not reflect the facts established during that hearing. We continue to believe that resolving this matter as quickly and efficiently as possible is in the best interests of claimants and all our stakeholders.

Since the beginning of this process, our goal has been to reach a fair and equitable resolution for claimants through a plan of reorganization and create a reasonable framework to address the unprecedented number of existing and future talc-related claims, and that has not changed.

We continue to stand firmly behind the safety of Johnson’s Baby Powder and are confident in the merits of our legal position. Johnson’s Baby Powder is safe, does not contain asbestos and does not cause cancer. We do not believe that any of the talc-related claims against the Company have merit, nor do we believe our products are responsible for any illness.

On March 22, 2023, we received an opinion from the Third Circuit denying our request for rehearing.

Our 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.

We will immediately move for a stay of this opinion so we can seek review directly from the U.S. Supreme Court.

Importantly, this was not a ruling on the merits of the cosmetic talc claims, but rather on whether LTL’s Chapter 11 filing can move forward.

We fully agree with the Bankruptcy Court that the restructuring process is the best path forward to reach a global resolution of the cosmetic talc litigation. Moreover, the Bankruptcy Court’s ruling followed a five-day evidentiary hearing, and the Third Circuit’s ruling does not reflect the facts established during that hearing. In fact, the Third Circuit did not question J&J’s belief that the bankruptcy created the best opportunity to achieve an efficient and equitable resolution of the talc-related claims. Rather, the Third Circuit’s decision turned on its determination that the Company did not face sufficient “financial distress” from the talc litigation to warrant the bankruptcy filing.

We continue to believe that resolving this matter as quickly and efficiently as possible is in the best interests of claimants and all our stakeholders.

Johnson & Johnson has agreed to provide funding to LTL for the payment of amounts the Bankruptcy Court determines are owed by LTL.

This process allows for an equitable solution for all parties, including for people who have legal claims against LTL – both currently or in the future.

While Johnson & Johnson has prevailed in the majority of talc cases tried, including six out of the eight jury trials in 2021 alone, there have been a small number of arbitrary, extraordinary verdicts in state courts that have contradicted the science. If only a small fraction of the pending cases yields these types of awards, the assets available to pay current and future claimants could be depleted. In addition, in the absence of LTL’s Chapter 11 filing, upwards of hundreds of millions per year would likely be spent in defense costs. Additional extraordinary verdicts, coupled with the excessive associated legal costs, would make continued litigation unsustainable for any company.

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.

While we challenge this ruling, we will seek a stay to maintain the status quo and will request the court issue a stay of further litigation.

If the stay is not granted, it is likely that lawsuits will begin moving again in the tort system, with a likelihood that we will try one or more cases to verdict. LTL stands ready to defend these lawsuits as lacking merit.

We will continue exploring all our options to resolve this in the most efficient and equitable manner.

Johnson & Johnson and other affiliates of Johnson & Johnson did NOT file Chapter 11. Accordingly, LTL’s Chapter 11 filing has no impact on the operations of Johnson & Johnson or its other affiliates, and they continue to operate their businesses as usual. There has been no impact to employees, patients, healthcare providers, customers, consumers, partners or other stakeholders.

Court filings and information about LTL’s Chapter 11 case are available on a separate website administered by its claims agent, Epiq, at https://dm.epiq11.com/LTL; by calling Epiq representatives at (855) 675-3078 from the U.S. or (503) 520-4497 from international locations; or by emailing Epiq at LTLinfo@epiqglobal.com.