FAQ
The Plan provides for the comprehensive and final resolution of all current and future talc claims related to ovarian cancer arising from cosmetic talc litigation against Johnson & Johnson and its affiliates in the U.S. The Plan would resolve 99.75% of all pending talc lawsuits against Johnson & Johnson and its affiliates in the U.S.
Johnson & Johnson and LLT fully expect a favorable vote will be secured, as the Plan is in the best interests of the ovarian claimants. The Company has prevailed in approximately 95% of such cases tried to date and in every case tried in the last six years. Most of these claimants have not recovered and will not recover anything at trial. Additionally, the Plan was developed with the assistance and support of counsel representing the overwhelming majority of current ovarian claimants.
If 75% of claimants vote in favor of the Plan, a Johnson & Johnson subsidiary may file a consensual “prepackaged” Chapter 11 bankruptcy to secure its confirmation.
The remaining pending personal injury lawsuits relate to mesothelioma and will be addressed outside of the Plan. The Company already has resolved 95% of mesothelioma lawsuits filed to date. The State consumer protection claims will also be addressed outside the Plan; the Company already has agreements in principle to do so. Finally, and for completeness, the Company has also reached an agreement in principle to resolve all talc-related claims against it in the bankruptcy cases filed by suppliers of its talc (Imerys Talc America, Inc., Cyprus Mines Corporation, and their related parties).
The Company and LLT will begin a three-month solicitation period during which ovarian claimants are informed of its terms and will have the opportunity to vote for or against the Plan – an opportunity they were denied in the prior cases.
If 75% of claimants vote in favor of the Plan, a Johnson & Johnson subsidiary may file a consensual “prepackaged” Chapter 11 bankruptcy to secure its confirmation.
Johnson & Johnson’s goal has always been and continues to be resolving the talc claims quickly and efficiently. The Company and LLT believe the Plan represents the path forward to do so for the ovarian claimants and is in their best interests.
While Johnson & Johnson has prevailed in the overwhelming majority of ovarian claims tried, including all those claims tried this year, at the current rate, it would take decades to litigate the remaining cases, and the legal fees to do so would be untenable.
The proposed Plan allows for final and comprehensive resolution for ovarian claimants who most likely would recover nothing in the tort system.
Johnson & Johnson’s goal has always been and continues to be resolving the talc claims quickly and efficiently. The Company and LLT believe the Plan represents the path forward to do so for the ovarian claimants and is in their best interests.
The Plan commits the Company to pay ovarian claimants a present value of approximately $6.475 billion to be paid over 25 years, which is a far better recovery than the claimants stand to recover at trial.
Most ovarian claimants have not recovered and will not recover anything at trial. Indeed, the Company has prevailed in approximately 95% of ovarian cases tried to date, including every ovarian case tried over the last six years. In addition, based upon the historical run rate, it would take decades to litigate the remaining cases, and therefore, most claimants will never have “their day in court.”
The Plan of Reorganization is by LLT, not Johnson & Johnson. If a Chapter 11 filing is pursued following the Plan solicitation process, a Johnson & Johnson subsidiary may file – not Johnson & Johnson.
Johnson & Johnson and its other affiliates did not previously file Chapter 11. Accordingly, LLT’s Chapter 11 prior filings had no impact on the operations of Johnson & Johnson or its other affiliates, which continue to operate their businesses as usual.
There has also been no impact to the Company’s employees, patients, healthcare providers, customers, consumers, partners or other stakeholders.
Additional information regarding the Plan can be found on a website administered by Epiq, at: https://dm.epiq11.com/redrivertalc