In a recent court ruling, Johnson & Johnson’s controversial attempt to escape mesothelioma and ovarian cancer lawsuits using bankruptcy was rejected once again. Bankruptcy courts have now rejected their approach three separate times. Now, the company says it will stop pursuing that strategy and defend itself directly against each lawsuit in court.
Watching a corporation use the legal system to delay accountability is frustrating for any family affected by asbestos. Our nationwide mesothelioma lawyers stand with those families and push their cases forward. Attorney Michael Throneberry built his practice around asbestos victims after losing his father-in-law to mesothelioma, and the firm’s individual, relationship-driven approach reflects that personal commitment.
Their failed bankruptcy move, known as the “Texas Two-Step,” involved Johnson & Johnson creating a subsidiary company, putting all of its asbestos-related debt onto that company, and then placing the subsidiary into bankruptcy. Critics argued the company’s real goal was to escape the full cost of lawsuits and keep victims from seeking proper compensation in the regular court system. When a company places asbestos liability into bankruptcy, victims often turn instead to asbestos trust funds or direct lawsuits for compensation.
With this strategy now defeated, thousands of mesothelioma and ovarian cancer cases are heading back to civil court. This development is significant for the victims, especially since most of them fought hard against the proposed bankruptcy settlements, saying the money offered was not enough to cover the damage done to them and their families.
With the bankruptcy approach rejected, the pending mesothelioma and ovarian cancer lawsuits can now continue in state and federal courts under existing litigation structures. This means each claim will move through discovery, witness testimony, and potential trial or settlement negotiations based on its individual facts.
The company has consistently claimed that its products were safe and did not lead to cancer. However, multiple juries have ruled in favor of victims and their families, handing down huge verdicts in certain cases after reviewing evidence and testimony regarding the company’s handling of safety issues and allegations that it failed to inform consumers about potential risks. Questions about whether talc products can contain asbestos have drawn federal attention, and the FDA released data from its 2023 testing of talc cosmetic products.
According to reports, so far, juries across the nation have awarded billions of dollars to patients and their families. Top verdicts include a verdict that exceeded $1 billion, with many others in the multimillion-dollar range. These awards cover damages such as medical bills, suffering, lost income, and reduced quality of life.
For most victims, J&J’s bankruptcy proceedings delayed their ability to pursue justice in court. Approximately 67,000 claims were affected by Johnson & Johnson’s repeated bankruptcy filings. Now, with the company saying it will not appeal the latest ruling, these cases can finally move ahead, one by one, through the courts. This means more people may get the chance to share their stories directly with juries, rather than being forced to settle for a class action settlement that would have provided insufficient compensation. With the cases moving again, more victims can weigh a lawsuit against an asbestos trust fund claim.
For affected individuals, the courts’ repeated decision to reject J&J’s bankruptcy approach offers another chance to pursue accountability and seek fair compensation through the traditional court system. This development opens the door for victims and their families to seek justice and compensation in regular courts, where their claims can be heard and evaluated based on the specific harm suffered. Each family can now pursue compensation for mesothelioma or ovarian cancer based on the specific harm suffered.
Nationwide Mesothelioma Lawyers at Throneberry Law Group
With the bankruptcy strategy rejected, thousands of mesothelioma and ovarian cancer claims can finally be heard on their own facts. If you were diagnosed with one of these illnesses, or you are handling a claim for a family member who has passed, Throneberry Law Group can help you understand what comes next.
Our firm works with clients across the country, supports Spanish-speaking families, and keeps each case personal instead of treating it as one of thousands. From our offices in Phoenix, Kansas City, and Chicago, we are ready to investigate your exposure and explain your options at no cost. To tell us about your situation, reach out through our contact form.
