Congressional Hearing on Bankruptcy to Address Mass Tort Litigation
ATRA Reiterates Support for Chapter 11 Bankruptcy Use to Address Mass Tort Litigation, Urges Meaningful Dialogue Amid Senate Judiciary Committee Hearing
Fails to Affirm Supremacy of Federal Law
Today, the U.S. Supreme Court announced it will not review a verdict against Janssen Pharmaceuticals in which a Philadelphia court held the company liable, disregarding the fact that the company complied with federal laws and regulations.
We are disappointed in the Court’s refusal to review Janssen Pharmaceuticals v. A.Y. The Supreme Court had an opportunity to address inconsistency caused by rogue state courts and failed to do so. This failure creates a system in which regulated industries are “damned if you do; damned if you don’t” as state courts are permitted to penalize defendants for following federal law.
Creating this level of legal inconsistency and unpredictable liability will impair innovation and investment in the development of new treatments. It exposes businesses to 50 different state regulatory and liability structures, making it next to impossible to plan financially when faced with unpredictable legal environments that could result in billions of dollars in legal fees.
We have all witnessed the regulatory process at work as the covid-19 vaccines were developed and went through the full rigors of the regulatory process. These were critical steps toward solving a once-in-a-lifetime pandemic. The unfortunate result of legal inconsistency is fewer resources for the research and development of more life-saving medicines, harming the very patients these expansive liability theories profess to benefit.
ATRA Reiterates Support for Chapter 11 Bankruptcy Use to Address Mass Tort Litigation, Urges Meaningful Dialogue Amid Senate Judiciary Committee Hearing
By maintaining the clear distinction between the judiciary and policymaking, the court can help us navigate this critical issue with prudence and responsibility, safeguarding a sustainable future for all.
The lack of oversight and transparency around third-party litigation funding threatens the integrity of our legal system
Together, let’s forge a legal landscape that makes equitable access to justice a living reality for all Georgians.
This is an opportunity to reassess the practices and regulations surrounding private-attorney contracting and to enact reforms that promote fairness, transparency and value for taxpayer dollars.
Allowing the company to continue the bankruptcy process will help ensure equitable and efficient resolution in complex mass tort claims