Houston Republic

The head of a southwest U.S. policy group said Texas “may have found a better way” to deal with mass tort litigation through a proposed settlement in long-running litigation against Johnson & Johnson (J&J).

“A new legal framework currently under consideration in the state could revolutionize how mass tort cases are handled, promising faster resolutions for victims and protecting them from exploitation from outside legal actors while preventing frivolous claims against businesses,” Patrick Brenner, president of the Southwest Public Policy Institute (SPPI), wrote in an OA Online op-ed.  “This approach is being tested in a high-profile case involving talc-based baby powder products and their alleged connection to ovarian cancer – a legal battle that has consumed more than a decade in U.S. courts.”

“The innovative Texas solution combines corporate restructuring under state law with Chapter 11 proceedings in federal bankruptcy court, offering distinct advantages,” wrote Brenner. “The talc case has already produced remarkable results: a proposed settlement worth nearly $10 billion over 25 years, one of the largest in legal history. More importantly, when put to a vote, more than three-quarters of claimants supported the offer, recognizing it as a fair resolution that provides swift compensation while avoiding years of uncertain litigation.”

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. 83% of current claimants have expressed support for this plan, exceeding the 75% approval threshold required by U.S. bankruptcy code.

The chairman of a consumer advocacy group told Houston Republic on Nov. 7 that the case puts Texas “in a spot to demonstrate its capability to handle such high-profile cases” 

“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.”

“Supporting this plan benefits all involved parties," wrote Scimeca. "It will highlight Texas as a state capable of delivering solid legal outcomes while eliminating faulty claims from being recognized in court.”