Durbin Applauds Appellate Court Ruling in Johnson & Johnson Baby Powder Case
Third Circuit Court of Appeals ruling is a victory for consumers and follows repeated calls from Senator Durbin, Senate Judiciary Committee for Johnson & Johnson to be held accountable to cancer victims.
WASHINGTON – Today,
U.S. Senate Majority Whip Dick Durbin (D-IL), Chair of the Senate Judiciary
Committee, released the following statement regarding the Third Circuit Court
of Appeals’ rejection of the bankruptcy filing by a shell company created by
Johnson & Johnson to dodge nearly 40,000 legal claims related to harm
caused by its talc products:
“Today’s ruling is
a step towards justice for the tens of thousands of ovarian cancer and
mesothelioma victims who have been denied their day in court by Johnson &
Johnson’s attempted manipulation of the bankruptcy system. Johnson &
Johnson is trying to evade accountability to victims of asbestos-tainted baby
powder by pursuing the ‘Texas Two-Step,’ a cynical maneuver involving corporate
reshuffling and exploitation of a loophole in our bankruptcy laws. Johnson
& Johnson is just one of several major corporations that are actively
trying to use the bankruptcy system to dodge responsibility for harm done to
consumers. While I will continue to seek legislative solutions, this decision
is a powerful blow against their efforts.”
Durbin has
repeatedly condemned Johnson & Johnson’s attempt to avoid accountability
and exploit loopholes in bankruptcy law. In February 2022, he spoke
on the Senate floor
and in a subcommittee
hearing. Durbin
also has led bicameral letters to Johnson & Johnson leadership, and he
cosponsored the Nondebtor
Release Prohibition Act of 2021, which would prevent the use of the
“Texas Two-Step” maneuver.
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