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Anapol Weiss Of Counsel Sues J&J for Fraud Related to J&J Talc Unit's Asset Shuffles

By George Woolston, Reporter for Law 360

Published in: Law 360 (May 22, 2024)

Anapol Weiss Of Counsel Richard Golomb, who represents more than 1,500 women whose cancer is alleged to be caused by talc powder usage, has joined with counsel from other talc powder cancer patients to sue Johnson & Johnson for fraud.

The plaintiffs’ complaint alleges that J&J has tried to intentionally prevent tort victims from getting their day in court through a scheme of fraudulent corporate transactions. The complaint argues that a series of corporate transfers stemming from the company's 2021 "Texas two-step" maneuver, in which it formed its subsidiary LTL Management to hold its cosmetic talc liability, should be undone.

The plaintiffs are seeking a declaratory judgment finding that the 2021 move — along with the 2022 transfer of corporate assets from an existing consumer health division into a new entity known as Kenvue and the 2023 replacement of a $61.5 billion funding agreement provided to LTL with a $29.9 billion funding agreement — were fraudulent. They ask that those transfers be voided and for a finding that J&J is liable for the full $61.5 billion provided in the original funding agreement to LTL.

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Read about the Talc Powder Class Action (also known as the Baby Powder Lawsuits) here: