ST LOUIS--(BUSINESS WIRE)--Lawyers representing tens of thousands of plaintiffs have successfully reached resolution with Johnson & Johnson (NYSE: JNJ) after years of the pharmaceutical giant scheming to avoid responsibility for its cancer-causing talcum powder products.
J&J has agreed to pay $8.9 billion into a bankruptcy trust to compensate both current and future victims of talc-related cancers. According to lawyers familiar with the terms, that amount is set to increase to $12.08 billion over time.
Managing Partner and trial lawyer Majed Nachawati, of Dallas-based Nachawati Law Group, served on a leadership committee appointed to spearhead the claims and played a vital role in securing justice on behalf of approximately 65,000 plaintiffs.
“It was a long, hard-fought battle, but the work to achieve this resolution is nothing compared to what these families endured and lost,” said Mr. Nachawati. “I am very thankful to be a part of this accomplishment on behalf of those who have suffered. We hope this sets a precedent for other major pharmaceutical companies to do the right thing.”
Several studies linked J&J products to serious illnesses and cancers more than a decade ago. An investigation into J&J’s own records revealed that not only did they know of the dangers and risks associated with their products, including the iconic Baby Powder, but they also hid those facts from unsuspecting consumers for years. The company has since been avoiding responsibility through a controversial bankruptcy ploy, dumping existing and future jury verdicts from thousands of cancer lawsuits into a shell company before filing for Chapter 11 protection. The Third Circuit Court of Appeals in New Jersey recently set aside that bankruptcy filing, ruling it was made in bad faith.
Under the new agreement, J&J will file a second bankruptcy claim in which payment grids and criteria are still being finalized. 75 percent of the claimants must vote to approve the terms. Once approved, J&J has committed to paying all current claimants within one year and removing all talc-based products from store shelves worldwide.
Nachawati Law Group represents individuals in mass tort litigation, businesses and governmental entities in contingent litigation, and individual victims in complex personal injury litigation.
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