Johnson & Johnson looking to bankruptcy to resolve 40,000 baby powder cancer suits
ABC News
Citing what it calls an “unrelenting assault” by greedy lawyers, Johnson & Johnson is hoping to use the bankruptcy process to dispose of 40,000 lawsuits that claim its baby powder products caused cancer.
A J&J subsidiary created to hold the liabilities from the litigation announced last week it was filing for chapter 11 protection.
During Wednesday’s hearing, the first in the case, the judge is expected to hear from J&J why bankruptcy is the best method to resolve the lawsuits and from critics who called the move “an unconscionable abuse of the legal system.”
“There are countless Americans suffering from cancer, or mourning the death of a loved one, because of the toxic baby powder that Johnson & Johnson put on the market that has made it one of the most profitable pharmaceutical corporations in the world. Their conduct and now bankruptcy gimmick is as despicable as it is brazen,” Linda Lipsen, of the American Association for Justice, an advocacy group pushing for change in bankruptcy laws, said in a statement.
