Mesothelioma Patients Accuse Johnson & Johnson of Fraudulent Practices

Mesothelioma and ovarian cancer victims have launched a new legal challenge against Johnson & Johnson, accusing the company of fraudulent corporate maneuvers to avoid compensating them for their illnesses. The group claims that J&J’s actions were designed to block their ability to collect compensation.

Key Takeaways

Mesothelioma and ovarian cancer victims accuse J&J of fraudulent corporate transactions.
The victims argue that J&J’s bankruptcy filing and formation of LTL Management were meant to sidestep liabilities.
They seek to void corporate transfers and hold J&J liable for the original $61.5 billion funding agreement.
The group is asking for both compensatory and punitive damages.

Fraudulent Corporate Transactions

The group of mesothelioma and ovarian cancer victims argue that Johnson & Johnson’s bankruptcy filing and the formation of LTL Management were specifically pursued to sidestep its liabilities. They claim that the corporate transfers completed as part of this process were fraudulent and are seeking a declaratory judgment to void these actions.

The Texas Two-Step Maneuver

The victims highlight a series of corporate maneuvers that began with the 2021 formation of LTL Management. This was followed by a transfer of corporate assets from an existing consumer health division into a new entity in 2022. Additionally, a funding agreement worth $61.5 billion was replaced with a $29.9 billion agreement. The victims argue that these transfers were made to leverage the bankruptcy courts and delay trials, and they should be voided.

Seeking Accountability and Damages

The group is accusing Johnson & Johnson of malicious abuse and use of process. They are asking for both compensatory and punitive damages from the company, its subsidiaries, and individual executives. A representative for the plaintiffs stated that it is time for J&J to be held accountable for its actions, which have further harmed women and families who have already suffered tremendously.

Conclusion

The legal battle against Johnson & Johnson continues as mesothelioma and ovarian cancer victims seek justice and accountability. The outcome of this case could have significant implications for corporate responsibility and the use of bankruptcy courts to sidestep liabilities.