Johnson & Johnson faces a pivotal courtroom battle as it seeks approval for a $10 billion settlement aimed at resolving tens of thousands of lawsuits alleging its talc-based baby powder caused ovarian cancer. A federal judge in Houston will weigh arguments on whether to greenlight J&J’s controversial bankruptcy strategy or shut it down entirely.
The pharmaceutical giant has made two failed attempts to settle the lawsuits through bankruptcy, with courts previously rejecting its approach. This time, J&J insists the plan has the necessary backing, citing a vote in favor of the deal by claimants. Opponents, however, argue the process was manipulated, accusing the company of disregarding dissenting voices while pushing votes in its favor.
J&J contends that bankruptcy offers a streamlined way to compensate victims, avoiding the unpredictability of individual lawsuits that could result in massive verdicts for some and nothing for others. Critics counter that the company is using bankruptcy as a shield to limit payouts and sidestep legal accountability.
The judge’s ruling, expected after the ongoing hearings conclude in late February, will determine whether J&J can finally put this legal saga behind it—or if the fight will continue.
