Johnson & Johnson sued by cancer victims over 'fraudulent' bankruptcies

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Johnson & Johnson sued by cancer victims over 'fraudulent' bankruptcies
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Five plaintiffs sued Johnson & Johnson on Wednesday, accusing the company of fraud through its use of a shell company's bankruptcy to resolve lawsuits over its talc products.

A group of cancer victims sued Johnson & Johnson on Wednesday, accusing the healthcare company of committing fraud through repeated and continued efforts to use a shell company's bankruptcy to resolve tens of thousands of lawsuits alleging its talc products contained asbestos and caused cancer. Five plaintiffs who seek to represent over 50,000 people who have sued J&J over its talc products filed the proposed class action in New Jersey federal court.

's worldwide vice president of litigation, Erik Haas, said the lawsuit was a "Hail Mary pass" by plaintiffs' lawyers who don't want their clients to vote on the company's latest proposed bankruptcy settlement. "Why are they so desperate to stop the vote?" Haas said. "Our focus has been and will remain reaching a full, fair and final resolution of this litigation, and allowing the claimants to speak for themselves.

Litigation against J&J resumed after its second bankruptcy was dismissed. In recent trials, J&J was ordered to pay $45 million in a mesothelioma case while winning an ovarian cancer case.

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