Houston Republic

The head of the Alliance for Consumers (AFC) said a "frantic effort" by trial lawyers is holding up a proposed settlement in Texas court involving long-running mass tort litigation against Johnson & Johnson (J&J).

"A Texas bankruptcy case is on the verge of paying out billions to cancer patients and others who have health claims relating to talc, which is used in products like makeup and baby powder," wrote O.H. Skinner, who founded AFC in 2020, an op-ed in The Daily Signal. "But on the eve of final approval, there is a frantic effort by a set of trial lawyers to hold up the deal, putting the money for countless cancer patients and families in limbo."

"This marks a stark reminder of a recurring consumer protection problem that demands real attention: the way that trial lawyers are wrecking the bankruptcy system and putting themselves in the driver’s seat at the expense of all the other people who rely on that system," wrote Skinner. "The case in question is often referred to as Red River and involves the mega-corporation Johnson & Johnson and legal claims relating to talc."

AFC is a nonprofit organization focused on ensuring consumer protection efforts benefit consumers and uphold the rule of law. 

Prior to founding AFC, Skinner held senior positions in the Arizona Attorney General's Office, including Arizona Solicitor General from 2019 to 2020. He earned his law degree from Harvard Law School in 2010 and previously practiced at WilmerHale and Ropes & Gray in Boston. Skinner also clerked for Judge J.L. Edmondson of the U.S. Court of Appeals for the Eleventh Circuit.

A Texas court is currently considering a proposed settlement over long-running litigation against J&J 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 head of a southwest U.S. policy group said last month this proposed settlement shows Texas “may have found a better way” to deal with mass tort litigation, reported the Houston Republic.

“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.”

Skinner wrote that the settlement includes an "$8 billion payout to cancer patients and famillies," but that this is being held up by an "Alabama law firm known as Beasley Allen. 

This law firm, wrote Skinner, is "seeking to fight the deal by contesting the votes consumers sent in, thereby holding up the settlement and gaining an advantage for itself." 

J&J took "aim" at Beasley Allen, reported Legal Newsline on Feb. 12, "basically calling them hypocrites whose lone standard is how much money they will make for themselves."