J&J Accused of Hiding Assets

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March 20, 2022
Edward Smith

Congressional Support for Those Injured by J&J Talcum Powder

Those injured by talcum products alleged to cause cancer should be familiar with the Texas Two-Step allegations being leveled against Johnson & Johnson by some members of Congress. Dick Durbin, the U.S. Senate Majority Whip, is taking aim at Johnson & Johnson and others. He claims that corporate assets are shielded in a legal bait-and-switch arrangement when companies release products that cause irreparable harm to consumers. 

Durbin Argues Shell Company Protects J&J From Cancer Claims

Durbin argued that J&J used a shell company to house their talc division in order to avoid consumer claims. According to the Chair of the Senate Judiciary Committee, Johnson & Johnson is using bankruptcy laws to avoid paying damages to those suffering from cancer. The strategy also prevents them from bringing their cases to court, delaying justice for many years, maybe until they are far too ill to fight anymore or until they die.

Talc Powder Effects: J&J’s Knowledge

During his February Senate floor speech, Durbin claimed that Johnson & Johnson realized its talc products contained hazardous asbestos. The company, however, continued its marketing and advertising to adults for personal use and as a baby powder for newborns

Discovery Documents Show Company Knew 

The documents released during the discovery process appeared to confirm that the company knew that asbestos had been linked to cancer and was present in its product. Durbin said the company is seeking to dismiss more than 38,000 claims that allege Johnson & Johnson is responsible for numerous cases of ovarian cancer and mesothelioma.

Members of Congress Write to Current J&J CEO

Durbin, along with other members of Congress, presented a letter to Joaquin Duato, Johnson & Johnson’s incoming CEO, in December 2021. Their question was whether he intended to continue shirking responsibility for those with cancer because of federal bankruptcy laws, or whether he would allow the cases to be heard. 

Senator Durbin is monitoring the issue and was displeased by the response from J&J in December of 2021. The response continued to use dubious claims about providing benefits to those harmed by their products. Alex Gorsky, the previous CEO of the company, had also been contacted by members of Congress looking for a reason behind the company’s actions following egregious harm to their customers.

Legislation Introduced to Close Bankruptcy Loophole

Members of Congress supporting the letters to J&J have introduced a bill in 2021 that would eradicate the bankruptcy loopholes corporations use to avoid liability to injured consumers. Projected sales by J&J may be more than $90 billion in 2022, and executives have not been quiet about the company’s financial strength. Members of Congress who are backing Durbin in his fight to make the powerful company responsible for injuries to consumers who were harmed by their products include Rep. Richard Blumenthal, Senator Elizabeth Warren, Rep. Carolyn Maloney and Rep. Raja Krishnamoorthi.

Talcum Powder Ovarian Cancer Lawyer

I’m Ed Smith, a talcum powder ovarian cancer lawyer. Our injury lawyers can provide you with free, friendly advice about how you can protect your rights and file a claim for damages if you or someone you love was diagnosed with ovarian cancer or another related illness after using talcum powder products. 

You can reach us at (916) 921-6400 or long-distance at (800) 404-5400. An online form is also available to contact us. We can set up a free, no-obligation review of your case, answer any questions you might have, and tell you how the case will be handled to recover the compensation you deserve.

Having information about a lawyer can be helpful when you are looking for advice about placing a claim to recover damages. This is why we include the following links to show you how our injury lawyers have helped others:

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Photo attribution: iStock-1180491673 – Credit:Sundry Photography

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