Johnson & Johnson's subsidiary, Red River Talc LLC, has filed a voluntary prepackaged Chapter 11 bankruptcy case in the Southern District of Texas to resolve all current and future claims related to ovarian cancer from cosmetic talc litigation. The plan, which has received overwhelming support from approximately 83% of current claimants, exceeds the 75% approval threshold necessary for confirmation under U.S. Bankruptcy Code. The plan aims to provide a fair and equitable resolution for all stakeholders, as emphasized by Erik Haas, Worldwide Vice President of Litigation for Johnson & Johnson.
As part of the bankruptcy process, Red River has increased its contribution to the settlement to around $8 billion, including a $1.1 billion commitment to a trust for claimants. Johnson & Johnson has also pledged an additional $650 million to cover legal fees and expenses for plaintiffs' counsel. This settlement represents one of the largest ever reached in a mass tort bankruptcy case, resolving 99.75% of pending talc lawsuits against the company. Despite the claims, Johnson & Johnson maintains that the allegations lack merit and are unsupported by independent experts and regulatory bodies.
