A South Carolina jury found Johnson & Johnson and co-defendant American International Industries negligent – to the sum of more than $63 million – in the lawsuit filed by Michael Perry and his family.
The lawsuit alleges that Johnson & Johnson Baby Powder was the cause of Michael’s mesothelioma, a rare and severe form of cancer. Perry claimed to use this baby powder daily as a substitute for deodorant.
Perry and his family were awarded $30.7 million in punitive damages and $32.6 million in compensatory damages, totaling approximately $63.4 million.
Compensatory damages are granted to the victim to compensate them for harm caused. Punitive damages serve to punish the responsible party and deter other companies from making similar mistakes.
For decades, Johnson & Johnson Baby Powder dominated the market before it was finally recalled in 2020 after the discovery of asbestos in the product. The main ingredient in the baby powder is talc, which can absorb moisture from the skin.
How Asbestos Contaminates Talc
Talc and asbestos are both naturally occurring minerals, and they often are found in the same geographic areas. When talc is mined, asbestos may unintentionally be mined as well and mix with the talc. The harvested talc is then ground into a powder for use in health and beauty products, including baby powder, which leads to potential exposure to asbestos for consumers.
Asbestos is the only known cause of mesothelioma, and can also lead to other cancer diagnoses such as lung and ovarian. Asbestos can break apart and release sharp fibers in the air. People can be harmed by asbestos if they swallow or inhale these fibers, which get trapped in tissue linings and cause cells to mutate into cancer.
Attempts by Johnson & Johnson to Avoid Lawsuits
Johnson & Johnson is attempting a bankruptcy tactic known as the “Texas Two-Step” to avoid facing cancer claimants in court.
The corporation’s strategy is to create a shell subsidiary company, LTL Management, to assume legal claims related to their Baby Powder. LTL Management intends to declare bankruptcy, as a bankrupt company is protected from lawsuits. Johnson & Johnson would resolve pending legal claims and establish an asbestos trust fund to compensate future claims as part of the bankruptcy.
Johnson & Johnson has attempted the Texas-Two Step maneuver twice in the past, and both were rejected in court. A third attempt is being made in Texas, as the state has more lenient bankruptcy laws.
The third attempt, which originally pledged $6.48 billion to settle pending ovarian cancer lawsuits, is pending. The bankruptcy proposal addresses ovarian cancer claims, which accounts for approximately 90% of all pending claims against the company. Johnson & Johnson later pledged an additional $1.1 billion.
Pending mesothelioma lawsuits are not covered by this proposal. Existing ovarian cancer claimants will vote on whether to accept the proposal.
In May, five cancer victims filed a class action lawsuit against Johnson & Johnson, accusing the company of fraud due to their repeated attempts at the Texas Two-Step maneuver. The victims alleged that the company is committing fraud by blocking billions of dollars from cancer victims through the Texas Two-Step strategy.
Sources & Author
- South Carolina Jury Awards $63.4 Million to Johnson & Johnson Asbestos Victim. Business Wire. Retrieved from: https://www.businesswire.com/news/home/20240815967067/en/South-Carolina-Jury-Awards-63.4-Million-to-Johnson-Johnson-Asbestos-Victim Accessed 9/1/2024.
- Johnson & Johnson adds $1.1 billion to proposed talc settlement. Reuters. Retrieved from: https://www.reuters.com/business/healthcare-pharmaceuticals/johnson-johnson-wins-over-longtime-holdout-talc-settlement-wsj-reports-2024-09-04/ Accessed 9/5/2024.
Sources & Author
