Johnson & Johnson’s Talc Settlement Triggers Legal Clash Among Plaintiffs’ Attorneys

In a dramatic turn of events, Johnson & Johnson’s latest bid to resolve thousands of talc-related lawsuits has ignited a fierce dispute among plaintiffs’ attorneys. The clash centers on allegations that The Smith Law Firm compromised a joint venture agreement to secure a lucrative deal with the pharmaceutical giant, leaving their former partners in a lurch.

Beasley, Allen, Crow, Methvin, Portis & Miles, leading the opposition against J&J’s settlement strategy, has filed a lawsuit in Alabama federal court. They accuse The Smith Law Firm of breaching their joint venture agreement in favor of a quicker settlement from J&J to alleviate its financial burdens.

J&J, which has consistently denied claims regarding the safety of its talc products, aims to finalize a multibillion-dollar settlement through the bankruptcy of a subsidiary. The company recently struck a deal with The Smith Law Firm, described as a significant holdout against the settlement. To sweeten the pot, J&J reportedly added an extra $1.1 billion to their previous $8 billion offer over 25 years.

Beasley Allen’s lawsuit claims that Smith reneged on the joint venture to expedite payment from J&J and escape debts to litigation funders. Smith has defended the settlement as a positive outcome for those suffering from ovarian cancer, dismissing the lawsuit as “baseless” and accusing Beasley Allen of using “petty tactics.”

The legal drama further escalates as Smith attempts to persuade joint clients to back J&J’s proposed bankruptcy settlement. Although J&J initially set a voting deadline for July 26, it has since extended the timeline to garner more support.

J&J is gearing up for a third bankruptcy filing by the end of the month to push through the settlement, despite previous court rejections of similar efforts. Beasley Allen argues that the settlement abuses U.S. bankruptcy law and inadequately compensates cancer victims.

The lawsuit also accuses Smith of failing to honor his obligations under the joint venture agreement, secretly retaining some talc clients, and accumulating significant debt with litigation funders. Additionally, Beasley Allen claims that Smith owes $1.1 million for litigation expenses fronted by them.

The case, filed as Beasley Allen v. The Smith Law Firm et al in the U.S. District Court for the Middle District of Alabama, No. 24-cv-00582, continues to unfold amidst a backdrop of high-stakes legal maneuvering.

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