A Texas bankruptcy judge has rejected Johnson & Johnson’s $10 billion Chapter 11 settlement plan for talc-related cancer lawsuits. The ruling clears the path for thousands of active baby powder cancer claims to proceed in civil court.
Judge Christopher Lopez found the plan legally flawed. He said it failed to protect claimant rights. The deal also attempted to shield non-bankrupt entities like retailers and spin-off Kenvue, which the court deemed improper.
The judge flagged a faulty voting process. Many claimants were not properly informed before casting votes. Lopez called the plan “misleading and inadequate.”
J&J has decided not to appeal. The company now plans to defend the lawsuits in regular court. As a result of this decision, all talc suits will remain in the federal MDL and state courts.
There are now over 60,000 active talc cases in the MDL. That number continues to rise. Legal experts say this ruling will accelerate bellwether trials. It could also increase pressure on J&J to reach a settlement in the future.
