Bankruptcy: The BEST Way To Address Mass-Tort Claims Against Johnson & Johnson (In re LTL)
Plaintiff lawyers acting for women in class actions against Johnson & Johnson (J&J) have a significant conflict of interest. The actions are based on the disputed fact that ovarian cancer may follow the use of baby powder to the perineum. J&J face an estimated 40,000 claims for compensation with the result being an unstructured bankruptcy should all the claims proceed.
In response J&J have sought chapter 11-bankruptcy protection in New Jersey, the state friendliest to big business. This attempt by J&J to isolate the damage from the litigation has been portrayed as a cynical attempt to deny sick women of their rights. The new entity; Long Term Liability LLC (LTL) has been granted protection by the bankruptcy court and the reasons are illustrative.
The bankruptcy court lists it’s reasons for the decision as being based on the principles of fairness. There is they say no attempt by J&J to hide assets or deny liability. Obviously there is only a certain amount available for the women and management through the bankruptcy court ensures equal distribution. Lawyer’s fees are controlled; hence the protest, and the company’s employees are also protected. The decision will go to appeal but this seems the only way forward.
No comments:
Post a Comment