NEW BRUNSWICK, N.J. — Johnson & Johnson is facing intensifying legal headwinds as courts in the United States and abroad weigh multimillion-dollar verdicts, procedural setbacks, and new product liability claims tied to its talc-based powders and consumer health products.
In early October, a California state jury returned a $966 million verdict against the company, finding it liable for the wrongful death of a woman who developed mesothelioma allegedly caused by asbestos-contaminated talc. The jury concluded that J&J acted with malice or oppression, triggering punitive damages under California law. The company has announced plans to appeal.
The verdict follows a series of mixed outcomes for J&J in similar talc-related cases across the country, many of which are consolidated in federal multidistrict litigation (MDL No. 2738) before the U.S. District Court for the District of New Jersey. Plaintiffs allege that long-term use of J&J’s talcum powder caused ovarian cancer or mesothelioma, claims the company denies.
Bankruptcy Maneuver Blocked
Separately, U.S. Bankruptcy Judge Michael B. Kaplan in Trenton rejected Johnson & Johnson’s latest attempt to resolve the litigation through a subsidiary’s Chapter 11 filing. The company sought to channel tens of thousands of lawsuits into bankruptcy via LTL Management LLC, offering a proposed $10 billion settlement trust. Judge Kaplan ruled that LTL did not face sufficient financial distress to justify bankruptcy protection — echoing a 2023 Third Circuit decision that previously dismissed an earlier iteration of the same strategy.
The ruling effectively reinstates the litigation across multiple jurisdictions and leaves J&J potentially liable for tens of billions in damages. Legal analysts note that the decision narrows the path for corporations attempting to use bankruptcy mechanisms to manage mass-tort exposure without insolvency.
“This case may become a defining precedent on the limits of so-called ‘Texas Two-Step’ bankruptcies,” said Alyssa Romero, a professor of bankruptcy law at Georgetown University. “It signals courts’ growing skepticism toward solvent entities using bankruptcy to shield themselves from tort claims.”
Expansion of Global Claims
Outside the United States, Johnson & Johnson faces a mounting collective action in the United Kingdom, where more than 3,000 claimants allege the company sold talc products containing asbestos despite knowing the potential health risks. The High Court of Justice has set a preliminary hearing for early 2026 to determine procedural consolidation and jurisdictional issues. The plaintiffs are seeking over £1 billion in damages.
Emerging Litigation Beyond Talc
Adding to its legal exposure, Texas Attorney General Ken Paxton filed suit in October against Johnson & Johnson and Kenvue Inc., the consumer health company spun off from J&J earlier this year. The complaint accuses both entities of deceptive trade practices under Texas law, alleging they misrepresented the safety of Tylenol for use during pregnancy. The state contends the companies failed to warn of purported risks linking acetaminophen use to autism spectrum disorder and ADHD in children. Both defendants have denied the allegations and moved to dismiss.
Corporate and Legal Implications
J&J maintains that its talc products are safe and free from asbestos and that its bankruptcy strategy represented a fair and efficient resolution for claimants. However, the company now faces renewed exposure to jury trials in multiple state and federal courts, as well as ongoing appellate challenges over procedural strategy.
Legal observers suggest the cumulative litigation may reshape product liability defense tactics for large corporations. “The J&J rulings underscore the judiciary’s unwillingness to stretch bankruptcy protections to fit reputational or contingent liability,” said Marcus Delgado, a partner at a New York-based litigation firm. “We’re witnessing a recalibration of how far corporate defendants can go in using restructuring tools to manage tort risk.”
With several bellwether trials scheduled for 2026 in federal and state courts — and the U.K. proceedings gaining momentum — Johnson & Johnson’s legal and financial exposure remains significant. Analysts estimate potential liabilities could exceed $20 billion if future verdicts follow recent patterns.
The company continues to assert it will “vigorously defend” its position while pursuing appeals and settlement negotiations in parallel.
