J&J Talc bankruptcy remains in Texas despite ‘forum shopping’ opposition By Reuters

By Dietrich Knauth

NEW YORK (Reuters) – A Johnson & Johnson ( NYSE: ) subsidiary can continue its third attempt to settle tens of thousands of lawsuits alleging its talc products caused cancer in a Texas bankruptcy court, it ruled on Thursday a judge, allowing the company to avoid a venue that shot down its previous two efforts.

U.S. Bankruptcy Judge Christopher Lopez, at a hearing in Houston, rejected arguments raised by the U.S. Justice Department’s Office of the U.S. Administrator, its bankruptcy watchdog and lawyers representing some of the women with ovarian cancer who oppose the settlement .

They had argued that the case should be sent to a New Jersey bankruptcy court that oversaw two previous bankruptcies designed to resolve the same talc lawsuits.

“I think this bankruptcy case is different,” Lopez said.

J&J is facing lawsuits from more than 62,000 plaintiffs who claim its baby powder and other talcum powder products were contaminated with asbestos and caused ovarian and other cancers. J&J said the total number of plaintiffs is even higher when including those who have not yet sued.

The company said its products do not contain asbestos or cause cancer and that bankruptcy is the best way to fairly compensate plaintiffs, who would otherwise wait years for their cases to be heard in a “like of a lottery,” which often results in no recovery for plaintiffs.

Erik Haas, J&J’s global vice president of litigation, said Lopez’s decision will help the company’s settlement efforts.

“Today’s decision is another step closer to the full and final resolution of the talc litigation to the benefit of all interested parties,” Haas said.