Johnson & Johnson is heading into a courtroom showdown over its latest $10 billion plan to resolve thousands of lawsuits linking its baby powder to ovarian cancer. With two previous attempts rejected, the company is making a third push to settle the claims through a subsidiary’s bankruptcy—a move that will be scrutinized in a marathon hearing starting Tuesday.
U.S. Bankruptcy Judge Christopher Lopez in Houston will decide whether to approve J&J’s strategy or shut it down entirely. More than 62,000 plaintiffs allege that asbestos-contaminated talc in J&J’s products caused ovarian and other cancers, an accusation the company continues to deny.
J&J argues that bankruptcy provides a more efficient and equitable way to compensate victims, avoiding the unpredictability of court trials that can yield massive payouts for some while leaving others with nothing. The company claims its latest proposal has enough backing to succeed where past efforts failed.
Critics, however, argue that J&J is using bankruptcy to pressure cancer victims into accepting reduced settlements. They contend that the voting process behind the deal was flawed and that J&J, a massive corporation, should not be able to shield itself from lawsuits in this way.
The upcoming hearings will feature testimony from both supporters and opponents of the deal, with the judge weighing evidence on the validity of the settlement process and the broader implications of allowing a wealthy corporation to leverage bankruptcy laws in this manner.
If approved, the deal would not only resolve existing lawsuits but also block future talc-related claims against J&J. The decision could set a precedent for how large companies handle mass litigation in the years ahead.
