NEW YORK, Aug 23 (Reuters) - Johnson & Johnson ( JNJ )
said on Friday it is negotiating with plaintiffs' lawyers who
have opposed the company's proposed settlement of lawsuits
alleging its baby powder and other talc products caused cancer,
seeking to eliminate holdouts to the deal.
J&J has announced plans to finalize a $6.48 billion global
settlement through the bankruptcy of a subsidiary company, after
earlier efforts were rebuffed twice by federal courts.
J&J says the majority of claimants support its settlement
offer. But it has paused a vote count for a short time so that
it can gather additional votes from plaintiffs who have until
recently opposed the deal.
"We have agreed to a short extension of the certification
timeline," said Erik Haas, J&J's worldwide vice president of
litigation, in a statement. "This will allow these plaintiffs'
attorneys time to speak to their claimants to now consider
supporting the plan."
A lawyer at Beasley Allen, a law firm that has led
opposition to J&J's proposed bankruptcy settlement, did not
immediately respond to a request for comment.
J&J plans to place a subsidiary into bankruptcy if it gets
at least 75% of the talc claimants to vote for its settlement
proposal.
The bankruptcy settlement would end all talc lawsuits
alleging that J&J products cause ovarian cancer, and it would
prevent similar cases from being filed in the future.
J&J faces lawsuits from more than 62,000 plaintiffs alleging
that its baby powder and other talc products were contaminated
with asbestos and caused ovarian and other cancers. J&J denies
the allegations and has said that its products are safe, do not
contain asbestos and do not cause cancer.
The current proposed settlement focuses on ovarian cancer
claims, building on the company's previous settlement of most
lawsuits alleging that its talc caused mesothelioma, a deadly
cancer linked to asbestos exposure.
By using a subsidiary's bankruptcy to file for bankruptcy,
J&J seeks to force all plaintiffs into one settlement - without
requiring J&J itself to file bankruptcy.
Bankruptcy judges can enforce global settlements that
permanently halt all related lawsuits and forbid new ones.
Outside of bankruptcy, any settlement J&J reached with some
clients would still leave holdouts or future plaintiffs with the
right to sue - and leave the company exposed to potential
multibillion-dollar verdicts that encouraged it to pursue a
bankruptcy settlement in the first place.
J&J has prevailed in many of the ovarian cases tried to
date, but the litigation has also resulted in some large
verdicts for plaintiffs, including a $2.12 billion award in
favor of 22 women who blamed their ovarian cancer on asbestos in
J&J talc.