Courts Question Legal Tactics as J&J and Avon Confront Growing Talc Liability
Legislation & Litigation
Written by Travis Rodgers | Edited By Amy Edel
People who developed mesothelioma, ovarian cancer and other diseases as a result of asbestos-contaminated talc continue to seek justice. But companies like Avon and Johnson & Johnson are fighting claims in court with mixed results.
In recent weeks, Avon’s own insurers have moved to block talc lawsuits in bankruptcy court. Meanwhile J&J faces its second trial in Boston this year, and a federal judge is pressing for accountability in the collapse of J&J’s third failed bankruptcy.
Boston Gears Up for Second Talc Trial Involving Johnson & Johnson
J&J is back in a Boston courtroom, this time facing a lawsuit from Paul Lovell. The Massachusetts resident was diagnosed with mesothelioma in 2021 after using the company’s iconic baby powder for 40 years.
Lovell’s legal team alleges J&J knowingly sold talc contaminated with asbestos and hid the risk from consumers and regulators for decades. Attorney Danny Kraft told jurors in his opening statements that J&J’s talcum powder had “a dirty little secret.”
Kraft argued it was a secret J&J “hid from us all for decades.” He added J&J concealed the truth from “Mr. Lovell and his family, from the three decades that he used it.”
He said it was: “A secret that J&J hid from the FDA, regulators, scientists, nurses and doctors. But most importantly the people like Paul Lovell who used the product every single day, year after year, decade after decade.”
Attorneys for Johnson & Johnson deny the claims. They argue Lovell’s illness stems from a “very rare gene fusion,” and not exposure to asbestos.
The trial follows a recent Boston verdict in which a jury awarded $8 million to Janice Paluzzi. She was also diagnosed with mesothelioma in 2021.
The jury concluded J&J’s talc products, baby powder and Shower-to-Shower contained asbestos, which contributed to her illness. Paluzzi was awarded $5 million for past pain and suffering, and $3 million for future suffering.
The company is facing more than 63,000 similar mesothelioma lawsuits. J&J continues to deny its products are responsible.
J&J Bankruptcy Strategy Draws Scrutiny
J& J’s third bankruptcy attempt, filed through its subsidiary Red River Talc LLC, was dismissed. This left creditors and fee applicants in limbo, without any decision on how their compensation would be handled.
In April, U.S. Bankruptcy Judge Christopher Lopez tossed the case without addressing the pending professional fees. Now, U.S. District Court Judge Keith P. Ellison has ordered Lopez to clarify the legal basis for declining to rule on the outstanding matters.
The pharma giant had tried three times to perform a strategy known as a “Texas Two-Step.” This involves creating subsidiary companies, most recently Red River, to absorb the company’s talc related liabilities, then filing for Chapter 11 bankruptcy. Courts have repeatedly rejected the filings, citing bad faith and that the parent company, J&J, remains financially solvent and capable of defending lawsuits against it.
In March, J&J officially abandoned the bankruptcy strategy and announced it would be returning to fighting the remaining lawsuits. The company also reversed approximately $7 billion it had held in reserve for the bankruptcy proceedings.
Avon Insurers Urge Court To Dismiss Bankruptcy
Avon, the global cosmetics and personal care brand, filed for Chapter 11 bankruptcy in August 2024, partly in response to a growing number of lawsuits alleging that its talc-based products caused cancer. At the time, Avon said the move was intended to “address its debt and legacy talc liabilities.”
But now, Avon’s own insurers have challenged the talc claims. In a recent Delaware bankruptcy court filing, they urged the judge to either dismiss the bankruptcy case entirely or convert it to a Chapter 7 liquidation.
Chapter 11 allows the company to continue operating while restructuring its debts. But Chapter 7 would require Avon to shut down and sell its assets to pay the claims.
The insurers argue that under Avon’s Chapter 11 bankruptcy plan, the plaintiffs in the talc lawsuits would be limited to seek compensation from a $30 million insurance fund. This could be much less after administrative costs are paid. The judge will decide if the bankruptcy is dismissed, which could allow the talc litigation against Avon to continue in civil court.
Avon is the defendant in hundreds of talc lawsuits. But the company denies its talc products are responsible for the plaintiffs’ injuries.
Plaintiff Rita-Ann Chapman, an Arizona woman, received a $52.1 million trial award in 2022, after winning her lawsuit against Avon. The family of an Illinois mesothelioma survivor received a $24.4 million trial award from another jury.
