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Why does Johnson & Johnson keep trying to file for bankruptcy?

On Behalf of | Nov 13, 2023 | Talcum Powder |

Johnson & Johnson (J&J) is one of the most successful health and beauty brands in the world. The company routinely posts massive profits and features brands that people recognize as household names.

Despite its success, the organization has attempted to file for bankruptcy twice in recent years and is now discussing the possibility of a third bankruptcy filing. Why would a company that is incredibly profitable ask the courts for bankruptcy protection?

Talc powder lawsuits have proven expensive

Researchers connected certain forms of cancer, including reproductive cancers, to asbestos exposure. There have been tests by independent laboratories that have found asbestos in certain health and beauty products. There are even internal memos on the record from within J&J that indicate executives were aware of possible asbestos contamination of the talc used in its products.

Despite all of this concerning evidence, the company has refused to label powder products as potentially dangerous and has also fought vehemently against lawsuits brought by those with otherwise inexplicable cases of cancer. Currently, there are at least 18 very expensive, high-profile lawsuits pending against J&J.

The company is eager to avoid financial responsibility for those lawsuits and numerous others in which consumers have prevailed against the company. It has previously cited both the size of the verdicts handed down in lawsuits and the costs of preparing for court as major, insurmountable expenses that could hurt the company’s bottom line. There have been cases that have resulted in millions of dollars in compensation awarded to plaintiffs in recent years.

The business has sought to utilize the business-friendly bankruptcy laws in Texas to eliminate liability for these talc powder cases. However, two separate judges have dismissed the company’s prior bankruptcy filings. These judges pointed out that the organization has more than enough resources to cover the cost of litigation and reimburse those seeking compensation through the courts for damages related to cancers caused by asbestos contamination.

Ultimately, pursuing a talc powder claim is a reasonable response to learning about cancer likely caused by unsafe contaminated products. Seeking legal guidance is a good way to learn more about one’s rights and options in this regard.