AWKO Announces Support for Consensual Prepackaged Bankruptcy Plan to Resolve Talcum Powder Litigation Against Johnson & Johnson

Jun 10, 2024


PENSACOLA, FL – Today, Aylstock, Witkin, Kreis and Overholtz, PLC (AWKO) announced that it will support efforts to resolve the talcum powder litigation against Johnson & Johnson (J&J) via a consensual prepackaged bankruptcy plan. In May 2024, J&J announced that its subsidiary LLT Management LLC was proposing a prepackaged plan of reorganization to resolve its talc-related liabilities. Under the terms of the plan, a trust would be funded with over $5.4 billion in the first three years and more than $8 billion over the course of 25 years, which J&J calculates to have a net present value of $6.475 billion. 

AWKO had previously vigorously opposed J&J’s prior efforts to resolve the talcum powder litigation through a forced bankruptcy plan as insufficient for the needs of the plaintiffs who had brought claims related to ovarian cancer.  After a thorough review of the plan and plan documents, AWKO believes that this consensual plan represents material improvement over the prior plans. While any settlement is by definition a compromise, AWKO believes that this arrangement, if approved, would secure meaningful, timely recoveries for eligible clients who have been injured by J&J’s talcum powder. In light of its approval of the current settlement through the prepackaged plan of reorganization, AWKO will be withdrawing its appeal to the prior bankruptcy.

The plan, as proposed by J&J, allocates substantial resources to compensate injured clients, including an upfront $2 billion contribution into the trust, and provides a near-term path to recovery for many individuals. According to the plan’s disclosures, historical settlements for ovarian-cancer talc cases by J&J have ranged from “$50,000 to $80,000” net of certain costs. The plan estimates that similar cases would receive “an average recovery of between $50,000 and $200,000, with an average value between $75,000 and $150,000 being more likely” if the plan is confirmed. We will be communicating this recommendation to our talc clients eligible for compensation under the plan.

RE: MDL-2738