Bankruptcy Court Rejects $8 Billion Johnson & Johnson Talc Settlement

A U.S. bankruptcy court has rejected Johnson & Johnson’s $8 billion talc settlement proposal, which would have resolved all current and future ovarian cancer claims against the company. The court determined that the proposal lacked sufficient support from those affected.

Tens of thousands of victims have filed lawsuits alleging that J&J’s talc products were contaminated with asbestos and caused ovarian cancer, mesothelioma, and other serious illnesses.

While Johnson & Johnson has repeatedly denied any wrongdoing, the company has spent years trying to limit its legal liabilities through multiple failed bankruptcy attempts and other tactics.

J&J had argued that its bankruptcy approach would streamline the resolution of claims and provide quicker payouts to victims. However, critics said it was a tactic to avoid full accountability and protect J&J’s assets since bankrupt companies can’t be sued.

If you or a loved one has been diagnosed with cancer after using J&J’s talcum powder products, you may be eligible for compensation. Get started now with a free case review.

Johnson & Johnson Settlement Update: Bankruptcy Bid Denied Again

On March 31, 2025, U.S. Bankruptcy Judge Christopher Lopez of the Southern District of Texas rejected Johnson & Johnson’s third attempt to resolve talcum powder lawsuits through bankruptcy.

The company had proposed an $8 billion Johnson and Johnson ovarian cancer lawsuit settlement through a subsidiary called Red River Talc LLC to resolve over 60,000 claims. ​

In rejecting the proposal, Judge Lopez found that:

• J&J didn’t have enough support from ovarian cancer victims
• The company’s process of obtaining settlement approval from 75% of claimants was flawed, as the voting period was too short and many ballots were invalid​
• The plan went too far in shielding retailers that sold J&J’s talc products from litigation

The decision marks the third time J&J’s strategy to use bankruptcy as a way to resolve talc-related asbestos claims has been rejected by the courts.

Understanding the Johnson and Johnson Bankruptcy Strategy

At the heart of Johnson & Johnson’s legal strategy is the “Texas Two-Step” — a bankruptcy tactic sometimes used by large corporations to avoid paying full compensation in mass tort lawsuits while protecting their main business.

Johnson & Johnson executed the Texas two-step by:

• Creating a subsidiary under Texas state law that allowed the company to split into two separate businesses
• Assigning all liabilities related to talc lawsuits to the subsidiary
• Having the subsidiary file for Chapter 11 bankruptcy, which paused the litigation

Meanwhile, Johnson & Johnson, which is worth nearly $400 billion, remained untouched, continuing to do business as usual.

The idea behind the maneuver was to resolve claims through the bankruptcy system, where asbestos settlement payouts could be controlled and capped.

Those opposed claimed the tactic abused the bankruptcy system and was simply a way for J&J to avoid taking responsibility for harming consumers. A pair of federal judges agreed, finding the company too financially healthy to justify bankruptcy protection.

What the Johnson and Johnson Asbestos Settlement Rejection Means for Victims

The most recent rejection of Johnson & Johnson’s talcum powder and asbestos bankruptcy plan is a major win for plaintiffs who claim they developed ovarian cancer from the company’s baby powder.

Victims will now be allowed to continue with their lawsuits and seek the compensation they deserve for medical bills, lost wages, and more.

J&J talc products have been linked to:

• Mesothelioma
• Ovarian cancer
• Lung cancer
• Stomach cancer
• Uterine cancer

By dismissing the $8 billion Johnson and Johnson ovarian cancer settlement that opponents said provided too little too late, there’s now a path forward for victims to pursue full compensation through the justice system.

In response to the ruling, Johnson & Johnson said it wouldn’t appeal the decision but would litigate what it called “meritless talc claims.”

The company continues to deny that its talc products cause cancer, even though it has already paid out billions of dollars in talcum powder settlements and verdicts.

Get Help From a J&J Talcum Powder Lawyer

Companies like Johnson & Johnson should pay the price for selling dangerous products and putting consumers in harm’s way.

At LawFirm.com, we’ve partnered with experienced asbestos lawyers who can stand up to this powerful company and fight for the justice families deserve.

Together, our legal partners have secured over $10.2 billion in asbestos compensation for families nationwide.

Our talcum powder lawyers:

• Are able to help families in all 50 states
• Can determine the talc products that made you sick
• Don’t charge any upfront costs or hourly fees
• Handle all of the work involved in a talcum powder claim

Call (888) 726-9160 right now or fill out our form to take the first step toward the justice and compensation you deserve.