Most of the talc lawsuits have been brought by women with ovarian cancer, while other cases involve people with mesothelioma, a deadly cancer linked to asbestos exposure.
J&J has said that its baby powder and other talc products are safe, do not contain asbestos, and do not cause cancer.
J&J first used a corporate maneuver called the “Texas two-step” to place its talc liabilities into a new subsidiary that then filed for bankruptcy in 2021. The bankruptcy stopped the lawsuits from moving ahead against J&J, although it did not file for bankruptcy itself.
That and a second similar attempt to resolve the litigation failed as courts ruled that J&J and its subsidiary was not in financial distress so not eligible for bankruptcy. The company said on May 1 that it plans to pursue a third bankruptcy once it gets enough votes to support a $6.48 billion talc settlement.
Wednesday’s lawsuit seeks a ruling that the Texas two-step transaction was fraudulent, because it was undertaken solely to shelter J&J’s assets from the talc litigation.
Subsequent transactions, including J&J’s spinoff of its consumer health business Kenvue, were also fraudulent, according to the lawsuit, which also seeks compensatory and punitive damages.
J&J says the planned third bankruptcy for its unit will be different because it will have support from over 75% of the people with talc-related claims.
The company has streamlined the proposed third bankruptcy by reaching separate settlements with law firms representing people with mesothelioma, as well as U.S. states that alleged the company failed to warn consumers about the dangers of its talc products.
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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.
