CANCER patients in the US are suing Johnson & Johnson (J&J), accusing it of committing fraud by using a shell company's bankruptcy to settle thousands of lawsuits, reported Reuters.
Five plaintiffs who represent 50,000 people allege the company's talc products contained asbestos causing cancer.
They claim that the pharma company's bankruptcy strategy has avoided a payout of billions of dollars to plaintiffs in an attempt to "hinder, delay, and defraud these women and prevent them from ever having their day in court".
"Johnson & Johnson is playing a dark game of chess with this country's financial and judicial systems," said Mike Papantonio, an attorney for the cancer plaintiffs.
J&J's worldwide Vice President of Litigation, Erik Haas, said the lawsuit was a "Hail Mary pass" by the plaintiffs' lawyers, who do not want their clients to vote on the company's latest proposed bankruptcy settlement.
"Why are they so desperate to stop the vote?" Haas said.
"Our focus is and remains reaching a full, fair and final resolution of this litigation, and allowing the claimants to speak for themselves."
The corporate bankruptcy manoeuvre started in 2021.
Yesterday's lawsuit seeks a ruling that the 'Texas two-step' transaction was fraudulent, as it was undertaken "solely to shelter J&J's assets from talc litigation".
According to Reuters, "most of the talc lawsuits have been brought by women with ovarian cancer, while other cases involve people with mesothelioma, a deadly cancer linked to asbestos exposure".
J&J Australia was contacted for comment but didn't respond prior to publication.
However, the organisation continues to state that its baby powder and other talc products are safe, do not contain asbestos, and do not cause cancer. JG
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