Houston Republic

The chairman of a consumer advocacy group said Texas “is now in a spot to demonstrate its capability to handle such high-profile cases” as a mass tort case against Johnson & Johnson (J&J) that was recently moved to the state.

“The proposed settlement plan is crucial to achieving justice for the affected claimants,” wrote Gerard Scimeca, chairman of Consumer Action for a Strong Economy (CASE), in a recent op-ed in DC Journal. “Relocating the case to Texas offers an opportunity to expedite the resolution process, ensuring that claimants are adequately compensated without delays.”

“With its solid legal framework, Texas is now in a spot to demonstrate its capability to handle such high-profile cases like this one effectively and honorably while perhaps setting a framework for other states to follow,” wrote Scimeca. “Supporting this plan benefits all involved parties. It will highlight Texas as a state capable of delivering solid legal outcomes while eliminating faulty claims from being recognized in court.”

J&J's proposed settlement plan offers $6.4 billion in financial compensation to claimants affected by its talc products. The plan also allows claimants to have significant input in the resolution of their cases. 

The case has also impacted claimants with its duration. 

"The introduction of unproven testimony and opinion has prolonged the case, impeded judicial efficiency, and eroded public trust," Scimeca writes. "For 15 years and counting, the Johnson & Johnson talc litigation saga continues to play out in our nation’s court system, adding another exhibit to the unfortunate truism that the wheels of justice turn slowly."

J&J is currently involved in litigation concerning allegations that its talc-based products, such as baby powder, have caused cancer. In September 2024, a J&J subsidiary, Red River Talc LLC, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas.

This could allow the company to resolve more than 62,000 of these lawsuits. The proposed settlement plan offers approximately $8 billion to claimants over 25 years. 83% of current claimants have expressed support for this plan, exceeding the 75% approval threshold required by U.S. bankruptcy code.

According to a report from Legal Newsline, J&J raised its settlement proposal by $1 billion to plaintiffs who claim the company's talcum powder caused them to develop cancer. The increased offer has gained the backing of a plaintiff lawyer who had previously rejected similar proposals.

To manage its legal exposure, Johnson & Johnson established a subsidiary, LTL Management, in 2021 and filed for bankruptcy, offering to pay up to $60 billion to settle the claims. However, the U.S. Court of Appeals for the Third Circuit ruled that the subsidiary did not qualify for bankruptcy due to the parent company's financial strength.

The company then proposed a second settlement plan for $30 billion, which was also rejected. In its latest attempt, Johnson & Johnson has proposed a settlement plan that would pay over $9 billion over 25 years. This plan has the support of lawyers representing more than 75% of plaintiffs with ovarian cancer claims and will be filed in a Texas federal court. If approved, the settlement could become one of the largest in mass tort history.