The Official Committee of Talc Claimants Applauds Decision to Dismiss LTL Management Second Bankruptcy Attempt
NEW YORK, July 28, 2023 /PRNewswire/ -- The Official Committee of Talc Claimants (the "Committee"), which has been tirelessly pursuing justice for its constituency of talc victims' injury by Johnson & Johnson's ("J&J's") talc products, is pleased with the court's decision to dismiss the second bankruptcy attempt.
NEW YORK, July 28, 2023 /PRNewswire/ -- The Official Committee of Talc Claimants (the "Committee"), which has been tirelessly pursuing justice for its constituency of talc victims' injury by Johnson & Johnson's ("J&J's") talc products, is pleased with the court's decision to dismiss the second bankruptcy attempt. We believe the decision of the Honorable Chief Judge Kaplan was thoughtful, well-reasoned, and well-supported by the facts and law. This outcome now frees tens of thousands of victims to seek their justice through the tort system either before juries of their peers or by settlement on terms acceptable to them. The Committee has consistently contended the tort system is the rightful place for these claims to be resolved. Today's ruling validates the Committee's belief that J&J manipulated the bankruptcy system by using the "Texas Two-Step" legal maneuver and wrongfully sought to manufacture financial distress in its "Legacy Talc Liabilities" (LTL) Management subsidiary, solely to carry out a bad faith bankruptcy case. The company will now face the full weight of its conduct in the appropriate judicial forums.
"This ruling sends a clear message: multibillion-dollar, wholly solvent companies like J&J should not be allowed to use and in fact abuse bankruptcy laws to avoid accountability," said Brown Rudnick's David Molton, one of the co-counsels representing the Committee. "We are reassured by the Bankruptcy Court's reaffirmation that it will not allow solvent corporations to abuse the system and impose coercive, low-value and cram-down solutions on nonconsenting claimants. Justice should and now will triumph over corporate greed and legal chicanery."
"The claimants have waited long enough. Untold numbers of cancer victims have died while Johnson & Johnson attempted to manipulate the bankruptcy system to limit its liabilities," added Molton. "Now victims and their families can seek justice through the tort system – by presenting their case before a jury of their peers in courts of their own choosing."
The TCC filed its motion to dismiss on April 24, 2023, alongside several other movants, including the Office of the United States Trustee, numerous State Attorneys General, and other plaintiff groups, who shared a vision for this outcome. Chief Judge Kaplan's Opinion can be viewed on the case docket, available at: https://document.epiq11.com/document/getdocumentbycode?docId=4202926&projectCode=LCN&source=DM
About The Official Committee of Talc Claimants
The Official Committee of Talc Claimants (TCC), appointed by the Office of the United States Trustee (UST), an arm of the US Department of Justice, represents and acts as a fiduciary for all mesothelioma and ovarian cancer victims, as well as all subrogation claimants who have claims based on or derivative to the victims' talcum powder claims. For more information about the TCC, please view our website at https://www.ltltalccommittee.org/
The TCC is advised by counsel, an investment banker, a financial advisor, and claims estimation experts well-versed in mass tort, asbestos, talc, bankruptcy, and victim advocacy. These entities include Genova Burns L.L.C., Brown Rudnick L.L.P., Otterbourg PC, Massey & Gail L.L.P., Miller Thomson L.L.P., MoloLamken L.L.P., Compass Lexecon, FTI Consulting, and Houlihan Lokey.
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SOURCE Official Committee of Talc Claimants
