Rising Controversy Concerning the Spinoff of Johnson & Johnson’s Business Holdings

For the past few years, a collection of plaintiffs has alleged that Johnson & Johnson’s talc products have contributed to their cancer diagnoses. These plaintiffs have banded together into a single mass tort, which allowed victims to pursue compensation against Johnson & Johnson through a single lawsuit.

While Johnson & Johnson has always maintained that their talc products have not caused users to develop cancer, they also have acted to protect their business interests. This includes creating a subsidiary company called LTL Management, LLC. LTL’s sole purpose is to handle the litigation connected to the talc claims. However, LTL filed for bankruptcy in what some attorneys are calling a cynical move to avoid liability for the talc claims. Even so, people who have received a cancer diagnosis after using a Johnson & Johnson talc product should still reach out to a law firm to learn more about their legal rights.

LTL Management’s Bankruptcy Petition Provides Johnson & Johnson with Legal Protection

In October of 2021, LTL Management, LLC, a subsidiary of Johnson & Johnson, filed for bankruptcy protection. This move occurred in the face of tens of thousands of claims that Johnson & Johnson talc products have caused cancer.

From a legal perspective, this has significant advantages for Johnson & Johnson. When an entity seeks out bankruptcy protection, they are immune from future claims for civil compensation. In addition, ongoing cases may be subject to an automatic stay that keeps those cases in stasis while the bankruptcy proceedings move forward. Unfortunately, this can keep many victims in limbo, whether they have previously joined a mass tort or not. A legal team that needs to acquire medical records for numerous clients should reach out to a trustworthy medical record retrieval site for this important task.

Erecting Barriers Against the Payment of Fair Claims

The attorneys representing the victims of Johnson & Johnson are skeptical about the stated reasons for the bankruptcy filing. In an article published on November 19, 2021, the lawyers note that splitting Johnson & Johnson into two separate entities may lead to disputes over which entity is legally liable for the lawsuits arising out of talc cancer claims. In addition, allowing LTL Management to file bankruptcy independently of Johnson & Johnson may serve as a way for the pharmaceutical company to avoid the penalties that typically accompany a bankruptcy petition, while simultaneously avoiding payments to victims.

With the mass tort recently transferring to New Jersey, the opinion of the new court is yet to be seen. However, attorneys for the plaintiffs state that Johnson & Johnson may be bending the limits of professionalism and the law through seeking protection via a bankruptcy filing. In response, Johnson & Johnson states that the creation of LTL Management and that same company’s filing for bankruptcy are not related to the talc litigation.

Recent Moves by Johnson & Johnson Related to Talc Litigation Continue to Raise Concerns

The creation of a holding company poses a challenge for attorneys who want to see justice done for their clients. As a lawyer, the last thing you need is to be waiting weeks upon weeks for patient records to come back. If you are looking to get records quickly and securely, contact National Record Retrieval for more information.