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Department of Justice Challenges Johnson & Johnson’s Talc Bankruptcy

Legally Reviewed by Joseph P. Williams on May 19, 2025

The U.S. Department of Justice has challenged Johnson & Johnson’s attempt to resolve thousands of talcum powder lawsuits through bankruptcy proceedings. This legal maneuver, known as the “Texas Two-Step,” has been contested by the United States Department of Justice, arguing it improperly shields the company from facing mesothelioma and ovarian cancer claims related to asbestos contamination in their talc products. For those diagnosed with mesothelioma after using Johnson & Johnson’s talc products, this development may significantly impact your ability to seek the fair compensation you deserve.

At The Williams Law Firm, P.C., we have been closely monitoring this situation to ensure our clients’ rights are protected. Our team has extensive experience handling mesothelioma cases linked to asbestos exposure from contaminated talcum powder. We understand how devastating a mesothelioma diagnosis can be and remain committed to fighting for justice on behalf of those affected by corporate negligence.

Understanding the Johnson & Johnson Bankruptcy Strategy

Johnson & Johnson created a subsidiary called LTL Management in 2021 and transferred all talc-related liabilities to this entity before placing it into bankruptcy. This controversial legal strategy attempted to limit the company’s financial exposure to the thousands of lawsuits alleging their talcum powder products caused cancer. According to the American Association for Justice, this tactic is considered an abuse of the bankruptcy system, as it allows profitable corporations to avoid accountability for harmful products while continuing normal business operations.

It has been argued that this approach undermines the fundamental principles of bankruptcy law, which are designed to provide relief for companies truly facing financial distress. The government’s opposition represents a significant challenge to Johnson & Johnson’s strategy and may create new pathways for victims seeking compensation. To ensure you are able to build a strong mesothelioma claim after you were exposed to the harmful mineral known as asbestos, contact our founding attorney, Joe Williams, today.

How The Johnson & Johnson Talc Bankruptcy Case Affects Mesothelioma Victims

If you’ve been diagnosed with mesothelioma after using Johnson & Johnson’s talcum powder products, the outcome of this bankruptcy challenge could substantially impact your legal options to pursue the justice you deserve. The bankruptcy proceedings had temporarily halted all individual lawsuits against the company, preventing many asbestos exposure victims from moving forward with their claims.

However, if the DOJ succeeds in its challenge of Johnson & Johnson’s bankruptcy case, the stay on litigation could be lifted, allowing mesothelioma victims to pursue their cases against the company directly. This would potentially provide a more direct path to compensation rather than being forced into a bankruptcy trust system where payouts are often significantly reduced.

Mesothelioma cases linked to talcum powder differ from traditional asbestos exposure cases because the contamination was not always disclosed to consumers who used the products containing the harmful mineral. If you or a family member has suffered due to asbestos exposure after using talc products produced by Johnson & Johnson, our legal team is here to help you understand your rights and legal options to get justice.

What Are the Legal Options for Mesothelioma Victims?

If you have been diagnosed with mesothelioma and have a history of talcum powder use, you may be entitled to significant compensation regardless of the outcome of the bankruptcy proceedings. The legal landscape for these cases continues to evolve, but several options remain available to victims. These legal options may include the following:

  • Individual lawsuits against Johnson & Johnson if the bankruptcy is dismissed
  • Claims against other entities in the supply chain, including talc suppliers
  • Potential claims against retailers who sold contaminated products
  • Possible participation in any settlement fund established through litigation

Documentation of your talcum powder use history and medical records will be crucial to establishing your case. When you work with our trusted leading attorney, Joe Williams, who focuses on mesothelioma litigation, he can help ensure your claim is properly developed and pursued as you fight for the justice and compensation you are owed.

Contact The Williams Law Firm for Experienced Legal Representation

If you or someone you know has been diagnosed with mesothelioma after using talcum powder products, you need experienced legal representation to navigate these complex cases. At The Williams Law Firm, P.C., we have never lost a mesothelioma case and understand the intricate details involved in talc-related litigation. Our founding partner, Joseph P. Williams, brings 30 years of experience to every case and will personally meet with you in your home to discuss your situation.

We handle every mesothelioma case as our cause, not just as another file. Our personalized approach ensures your specific circumstances receive the attention and dedication they deserve. Contact The Williams Law Firm today at (855) 575-6376 or visit our contact form to schedule a free consultation.

Joseph P. Williams

Legally Reviewed by

Joseph P. Williams
Renowned Mesothelioma Attorney

May 19, 2025

As the founding partner of Williams Law Firm, Joseph P. Williams has dedicated over 30 years to representing mesothelioma victims and their families. His firm has recovered hundreds of millions of dollars for those affected by asbestos exposure, offering personalized, aggressive legal advocacy. Based in New York, Williams Law Firm provides free consultations and handles cases nationwide.

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