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Johnson & Johnson's $8 Billion Settlement in Jeopardy Amid Voting Fraud Claims

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Johnson & Johnson company offices are viewed on October 17, 2023 in Irvine, California. Mario Tama/Getty Images

Johnson & Johnson (J&J) is currently embroiled in legal battles concerning its baby powder products, as attorneys for some claimants argue that the voting process related to a major settlement was unfair.

The attorneys claim that ballots from individuals who chose to resolve their health claims against J&J should not be counted because the company manipulated the vote.

Johnson & Johnson Faces Allegations Over $8 Billion Settlement Vote

According to Bloomberg, the proposed settlement, which exceeds $8 billion, aims to address lawsuits from tens of thousands of women who allege that J&J's baby powder and other talc-based products caused cancer.

In bankruptcy court, a J&J subsidiary, Red River Talc, is attempting to secure approval for this large settlement. The company must obtain a 75% majority vote from claimants to persuade a judge to approve the settlement, according to rules outlined in Chapter 11 of the bankruptcy code.

Red River Talc claims to have received support from over 83% of voters, indicating that many agree with the settlement. However, the dissenting attorneys argue that J&J strategically sought support to achieve the necessary votes.

They suggest that this maneuvering undermines the integrity of the voting process. In response, Red River Talc denied these allegations, stating that the opposition has financial reasons to derail the agreement.

They pledged to challenge the claims and accused the dissenting attorneys of trying to unfairly influence the vote count. The bankruptcy case was filed in the US Bankruptcy Court for the Southern District of Texas, with the case number 24-90505.

The judge overseeing the case has indicated that the voting disagreement will be a crucial issue as both sides prepare for an extended legal battle.

Jury Awards $15 Million to Man Linked to J&J Talc Powder Cancer Case

In a related case, a jury recently ordered Johnson & Johnson to pay $15 million to a Connecticut man, Evan Plotkin.

Plotkin claims he developed mesothelioma, a rare type of cancer, after using J&J's talc powder for many years. This verdict was announced on Tuesday and marks another legal setback for the company.

Plotkin initiated legal action in 2021, shortly after being diagnosed with mesothelioma. His legal team argued that he became ill due to inhaling the talc powder sold by J&J. The jury in the Superior Court of Fairfield County found J&J responsible for his illness, and additional punitive damages will be determined by the judge at a later date.

Ben Braly, an attorney for Plotkin, expressed satisfaction with the jury's decision, emphasizing that it holds J&J accountable for selling a product they knew contained harmful substances, including asbestos.

In contrast, Erik Haas, J&J's global vice president of litigation, stated that the company plans to appeal the jury's decision. He claimed the ruling contradicts several independent studies that affirm the safety of talc, asserting that the product is free of asbestos and does not cause cancer, said Reuters.

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