Johnson & Johnson’s Talcum Powder Lawsuits: Will 2025 Bring Resolution or More Battles?
As Johnson & Johnson’s talcum powder litigation enters its second decade, the legal battles show no signs of slowing down. With billions of dollars on the line, high-stakes trials, and legislative efforts aimed at reshaping the landscape of corporate bankruptcy tactics, 2025 promises to be another pivotal year for the pharmaceutical giant.
At the heart of the litigation lies a contentious bankruptcy proceeding involving Johnson & Johnson’s subsidiary, Red River Talc. The company has proposed a $10 billion plan to compensate victims of ovarian cancer and other gynecological cancers allegedly linked to its talc products. However, the plan faces fierce opposition from many plaintiff law firms, who question its fairness and legality.
A crucial trial is set for February 18 in the Southern District of Texas, where U.S. Bankruptcy Judge Christopher Lopez will address the plan’s confirmation, allegations of voting irregularities, and potential dismissal of the Chapter 11 case.
“There’s a new plan,” Judge Lopez remarked during a December hearing, hinting at ongoing revisions and discovery disputes. Johnson & Johnson claims over 75% of talc claimants support the plan, but prominent opponents, including Beasley Allen’s Andy Birchfield, remain skeptical. Birchfield argues that many firms lack the financial resources to fight Johnson & Johnson’s bankruptcy strategy but maintain strong opposition.
The outcome of the February trial could set the stage for a series of appeals, potentially reaching the U.S. Supreme Court. The Fifth Circuit Court of Appeals is expected to weigh in on the case, while the Fourth Circuit’s decision on a similar mass tort bankruptcy involving Georgia-Pacific’s Bestwall could further influence the legal landscape.
Jessica Dean, an attorney whose firm has led mesothelioma trials against Johnson & Johnson, notes that additional trials are scheduled for early 2025 across multiple states, including California, Indiana, Washington, Louisiana, and Oklahoma. With juries awarding over $380 million to victims in 2024, these upcoming cases could add significant pressure on Johnson & Johnson.
On Capitol Hill, bipartisan efforts aim to address the controversial “Texas two-step” maneuver Johnson & Johnson employed to file its talc bankruptcies. This strategy involves splitting a company into two entities—one holding liabilities and the other retaining assets—to shield itself from large-scale lawsuits.
Republican Sens. Josh Hawley and Sheldon Whitehouse, along with Democratic Representatives Emilia Sykes and Lance Gooden, introduced the Ending Corporate Bankruptcy Abuse Act of 2024, targeting this tactic. Additionally, Democratic senators Elizabeth Warren, Dick Durbin, and Richard Blumenthal unveiled the Nondebtor Release Prohibition Act of 2024, seeking to codify the Supreme Court’s decision to strike down similar tactics in the Purdue Pharma opioid settlement.
Despite Republican control of Congress and the presidency, observers like attorney Clay Thompson suggest these legislative efforts might gain traction. “There is bipartisan recognition that the Texas two-step is unfair and wrong,” Thompson said, emphasizing the Republican Party’s evolving alignment with blue-collar workers and veterans—key demographics affected by the litigation.
With a crucial bankruptcy trial looming, a packed docket of mesothelioma cases, and potential legislative reforms, Johnson & Johnson faces a year of intense legal and political challenges. Whether 2025 marks the end of this chapter or the start of new battles remains uncertain, but one thing is clear: the stakes have never been higher.
Stay tuned for more!