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NEW YORK A U.S. bankruptcy judge on Monday rejected Johnson & Johnson's $10 billion proposal to end tens of thousands of lawsuits alleging that its baby powder and other talc products cause ovarian cancer, marking the third time the company's bankruptcy strategy has failed in court.

J&J has been attempting to resolve the lawsuits through a subsidiary company’s bankruptcy, after two previous bankruptcy attempts failed in other courts. But the judge overseeing its case, U.S. Bankruptcy Judge Christopher Lopez, said that the company did not belong in bankruptcy.

"While the Court’s decision is not an easy one, it is the right one," Lopez wrote. "The Court hopes something gets done for J&J, Red River, and claimants who also want finality on their cases."

J&J did not immediately respond to a request for comment late Monday.

Andy Birchfield, an attorney who represents plaintiffs' opposed to the bankruptcy settlement, said that J&J's bankruptcy strategy was a "nothing more than a bad-faith maneuver to avoid full accountability.”

“With this ruling, we are now moving forward without delay to trial, where our clients will finally have the chance to present their cases before a jury and obtain the justice they deserve,” Birchfield said.

J&J had argued that the third proposal, in Texas bankruptcy court, should succeed because there was more money on the table and the deal was supported by a majority of cancer victims who voted on it.

Opponents of the deal, including attorneys for some cancer victims and a government bankruptcy watchdog, had argued that the third bankruptcy, like the first two, should be dismissed because the company is not in “financial distress.” A wealthy company like J&J should not use bankruptcy to prevent cancer victims from having their day in court, opponents said.

J&J faces lawsuits from over 60,000 claimants alleging that its baby powder and other talc products contained asbestos and caused ovarian cancer. The settlement would have ended those lawsuits and prevented similar lawsuits from being filed in the future.

J&J, which began selling Johnson's baby powder in 1894, says that its products are safe, do not contain asbestos, and do not cause cancer. J&J stopped selling talc-based baby powder in the U.S. in 2020, switching to a cornstarch product.

Before seeking approval of its ovarian cancer settlement in a third bankruptcy, J&J separately settled lawsuits alleging that its talc products cause mesothelioma, a rare form of cancer associated with asbestos exposure.

J&J had estimated that ovarian cancer patients would receive between $75,000 and $150,000 under the settlement, although the exact amounts depended on the severity of a patient's injury and the number of current and future claims that were ultimately covered by the settlement. (Reporting by Dietrich Knauth; Editing by Alexia Garamfalvi and Stephen Coates)

Published on April 1, 2025