WASHINGTON, July 29, 2021 /PRNewswire/ -- More than 30,000
women cancer victims would retain their constitutional right to
have juries decide if talc in Johnson & Johnson's (NYSE:JNJ)
baby products caused their ovarian cancer under bankruptcy reforms
proposed Wednesday by key lawmakers in the U.S. Senate and House of
Representatives.
The Nondebtor Release Prohibition Act of 2021 would
close controversial bankruptcy loopholes, including non-consensual
third-party releases and the so-called "Texas Two-Step." Recent
media reports indicate that Johnson & Johnson – with a market
cap of more than $400 billion – is
contemplating bankruptcy to avoid paying claims and damages that
would likely cost a fraction of that amount. In a quarterly
earnings report issued this week, J&J announced sales of
$23.31 billion, a 27 percent increase
year over year, and upgraded its annual sales forecast to
$94.6 billion.
"Many of us are shocked that Johnson & Johnson would
consider abusing the bankruptcy process to avoid caring for the
women and families they've harmed," says Deane Berg, whose 2013 trial resulted in the
first jury verdict establishing a link between talcum powder and
ovarian cancer. "Before we were harmed by J&J, we were loyal
J&J customers. They've turned their back on all of us."
Dozens of studies published in peer-reviewed journals during the
past 25 years have shown a statistically significant association
between talc use and ovarian cancer and mesothelioma. Documents
produced at trial show that the company was aware of the dangers as
far back as the 1960s.
The bankruptcy reform proposal introduced by Sen. Elizabeth Warren (D-Mass.), Sen. Richard Durbin (D-Ill.) and Sen. Richard Blumenthal (D-Conn.) in the Senate, and
Rep. Jerrold Nadler (D-N.Y.) and
Rep. Carolyn Maloney (D-N.Y.) in the
House, would address a growing trend in which a profitable company
is able to quickly corral legal liabilities and debts into a
separate corporate entity. Known as a "divisive merger" or the
"Texas Two-Step," the liability-laden subsidiary is then
reincorporated elsewhere and eventually declared bankrupt. The
threat of bankruptcy is used to intimidate individuals who file
lawsuits and to drive down the value of negotiated settlements.
"These conscientious and well-informed lawmakers recognize that
allowing highly profitable companies to shirk their
responsibilities to society is reprehensible and can't be
tolerated," says Andy
Birchfield, Mass Tort Section Head at the Beasley Allen Law
Firm, which represents thousands of women diagnosed with ovarian
cancer after exposure to Johnson & Johnson Baby Powder and
other talc-based products. "The courts – not the federal bankruptcy
system – are the proper forum for resolving disputes between
wrongdoers and the people they injure."
The Nondebtor Release Prohibition Act would prohibit bankruptcy
judges from allowing companies that are not a party to gain
non-consensual releases of liability as part of the bankruptcy
process. This tactic allows corporations to employ bankruptcy as a
shield against liability. The legislation aligns with other
proposed legislation – dubbed the SACKLER Act – introduced by Rep.
Maloney.
In addition, bankruptcy filings often result in indefinite
delays that freeze ongoing lawsuits in state and federal courts.
Sen. Warren's bill would limit stays for a duration of only 90
days.
"These legislators should be applauded for recognizing the need
to close the loopholes that allow powerful individuals and
successful corporations to play blame-shifting with people's
lives," says Michelle Parfitt,
co-lead counsel in the federal talc MDL and a senior partner in the
law firm Ashcraft & Gerel. "Whether it's a baby powder, a
pharmaceutical or any other dangerous product, consumers need to be
able to gain adequate compensation for any losses and injuries
they've suffered. Without these proposals, that fundamental tenet
of our justice system is at risk."
About the Beasley Allen Law Firm
Headquartered in
Montgomery, Alabama, Beasley Allen is comprised of more than 70
attorneys and 200 support staff. One of the largest Plaintiffs law
firms in the country, Beasley Allen
is a national leader in civil litigation, with verdicts and
settlements of more than $26 billion.
For more information visit www.beasleyallen.com.
About the Ashcraft & Gerel Law Firm
Washington, D.C.-based Ashcraft & Gerel,
LLP was first developed in 1953. The goal of the law firm is to
help those who have been injured while on the job. Since its
founding, this law firm has become one of the largest and most
well-known personal injury firms in the U.S.
Contact:
Mark
Annick
mark@androvett.com
800-559-4534
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SOURCE Beasley Allen Law Firm