J&J’s LLT proposes to resolve all ovarian cancer talc claims via reorganization

Johnson & Johnson announced a proposed plan of reorganization by its subsidiary, LLT Management LLC, for the comprehensive and final resolution of all current and future claims related to ovarian cancer arising from cosmetic talc litigation against it and its affiliates in the United States. J&J says the plan enables the company to resolve its talc litigation. “The ovarian claims to be resolved by the Plan constitute 99.75% of the pending talc lawsuits against the company and its affiliates in the United States. The remaining pending personal injury lawsuits relate to mesothelioma and will be addressed outside of the plan. The company already has resolved 95% of mesothelioma lawsuits filed to date. The State consumer protection claims will also be addressed outside the plan; the company already has agreements in principle to do so. Finally, and for completeness, the company has also reached an agreement in principle to resolve all talc-related claims against it in the bankruptcy cases filed by suppliers of its talc,” J&J stated. “The plan is the culmination of our consensual resolution strategy that we announced last October,” said Erik Haas, Worldwide Vice President of Litigation, Johnson & Johnson. “Since then, the company has worked with counsel representing the overwhelming majority of talc claimants to bring this litigation to a close, which we expect to do through this plan. J&J added: “In its July 2023 decision dismissing LLT’s prior bankruptcy case, the New Jersey Bankruptcy Court stated that the company and LLT had made “remarkable progress” towards “a fair, efficient and expeditious settlement” for all claimants and “strongly encouraged” the pursuit of a comprehensive resolution through another bankruptcy. The company and LLT followed that directive, and the Plan proposed by LLT, along with the settlement of the mesothelioma, State consumer protection claims, and disputes with Imerys and Cyprus, is the culmination of those efforts. To account for these settlements and the comprehensive resolution of the ovarian claims through the plan, the company recorded an incremental charge of approximately $2.7B in the first quarter of 2024, for a total reserve of approximately $11.0B or $13.7B nominal payable over 25 years.”