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.
While LTL is prepared to try every case, addressing each and every one of the talc cases on an individual basis in the tort system would take decades. 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.
Chapter 11 also allows people who may make a legal claim related to talcum powder 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 July 28, 2023, the Bankruptcy Court dismissed LTL’s refiled case. This was not a ruling on the merits of the cosmetic talc claims, but rather on whether LTL’s case can move forward. LTL will appeal the ruling and continues to believe that its reorganization plan, which affords timely compensation for all claimants, offers the most equitable resolution to talc claims.
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. That goal remains the same today.
Importantly, neither of the LTL bankruptcy filings is an admission of wrongdoing. We continue to stand firmly behind the safety of Johnson’s Baby Powder. 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.
In the United States, the Chapter 11 bankruptcy process is designed to provide a single venue for all parties to participate in the resolution process, resulting in a comprehensive, fair and efficient settlement agreement that cannot be achieved through individual jury trials.
Importantly, the bankruptcy process provides the sole mechanism to fully resolve future claims. While LTL is prepared to try every case, addressing each and every one of the talc cases on an individual basis could take decades. The United States tort system is not equipped to resolve thousands of cases quickly or efficiently.
To demonstrate our commitment to a complete resolution of the U.S. talc litigation, the Company agreed to contribute up to a present value of $8.9 billion, payable over 25 years. Significantly, we secured commitments from approximately 60,000 current claimants to support a global resolution on these terms.
Johnson & Johnson has agreed to provide funding to LTL for the payment of amounts the Bankruptcy Court determines are owed by LTL.
To demonstrate our commitment to a complete resolution of the U.S. talc litigation, the Company has agreed to contribute up to a present value of $8.9 billion, payable over 25 years, which is an increase of $6.9 billion over the $2 billion previously committed in connection with LTL’s initial bankruptcy filing in October 2021.
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 claimants and the Bankruptcy Court. This process results in a Plan of Reorganization that is fair and equitable for all stakeholders.
On July 28, 2023, the Bankruptcy Court dismissed LTL’s refiled case. This was not a ruling on the merits of the cosmetic talc claims, but rather on whether LTL’s case can move forward. LTL will appeal the ruling.
In the event LTL does not prevail in the appeal, it is prepared to return to the tort system and vigorously defend itself in talc-related cases. In addition, the Company will bring its own legal actions to address abuses by the plaintiffs’ bar that gave rise to these meritless claims.
Johnson & Johnson and its other affiliates have not filed Chapter 11. Accordingly, LTL’s Chapter 11 filings have no impact on the operations of Johnson & Johnson or its other affiliates, which continue to operate their businesses as usual.
There is also no impact to the Company’s 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.
Epiq can also be contacted by calling representatives at (855) 675-3078 from the U.S. or (503) 520-4497 from international locations, or by emailing LTLinfo@epiqglobal.com.