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J&J’s Third Talc Bankruptcy Case Begins
A critical trial in Johnson & Johnson’s talcum powder bankruptcy began on February 18, with several lawyers arguing to dismiss the Chapter 11 case and reject the $10 billion plan.
The trial, which is expected to last two weeks, will feature potentially 40 witnesses. U.S. Bankruptcy Judge Christopher Lopez of the Southern District of Texas will decide whether Johnson & Johnson subsidiary Red River Talc filed the 2024 bankruptcy in bad faith, and if voting improprieties led 82% of an estimated 93,000 talc claimants to support the plan.
“The reason we’re here today is because Johnson & Johnson doesn’t trust the process,” Adam Silverstein, of New York’s Otterbourg, a lawyer for the Coalition of Counsel for Justice for Talc Claimants, told Lopez in an opening statement. “Johnson & Johnson chose to game the systems.”
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