Press Release
AAJ Statement on Appeals Court Rejecting Johnson & Johnson Bankruptcy Gimmick
Washington, DC — The following is a statement from American Association for Justice President Tad Thomas on the United States Court of Appeals for the Third Circuit decision in OFFICIAL COMMITTEE OF TALC CLAIMANTS v. LTL MANAGEMENT:
“This decision is a major victory for the thousands of cancer patients who became sick or lost lives from using J&J’s asbestos-contaminated talc baby powder, who will now have a chance at getting justice in court. For decades, J&J hid the fact that its product contained dangerous carcinogens. Other corporations should take note: judges can see through these efforts to abuse the bankruptcy system and evade accountability.
In our amicus brief, AAJ argued that the Chapter 11 petition deprived victims harmed by Johnson & Johnson’s products of their right to trial by jury through the creation of an artificial insolvency. In the 3rd Circuit decision, the judges agreed, stating that the company is not in financial distress."
