ATRA Reiterates Support for Chapter 11 Bankruptcy Use to Address Mass Tort Litigation, Urges Meaningful Dialogue Amid Senate Judiciary Committee Hearing
Efficiency in Justice: Why Bankruptcy is the Best Path Forward for Talc Claims
Resolution of these claims must unequivocally prioritize claimants’ best interests – lawyers’ financial interests must never take priority over the integrity and fundamental fairness of these proceedings.
A High-Stakes Case on the Verge of a Landmark Decision
Any day now, we expect a decision in one of the most consequential civil cases in the nation which involves more than 60,000 talcum powder claimants and Johnson & Johnson subsidiary LTL Management.
A recent hearing in the case before U.S. Chief Bankruptcy Judge Michael Kaplan for the District of New Jersey included an important revelation: despite the fact that claimants’ lawyers vigorously oppose consolidation of these cases in the bankruptcy process, these same lawyers plan to do exactly that if they are successful in having the bankruptcy proceedings dismissed.
Lawyers for these claimants are not opposing the bankruptcy process because it is too expensive or will take too long for their clients. The opposite is, in fact, the case. Bankruptcy will expedite the resolution of claims with all on an equal footing rather than a “race to the courthouse” if all claims are to be resolved through full-blown litigation. Johnson & Johnson has committed to contribute up to $8.9 billion over 25 years to resolve these cases. It is no wonder that counsel for 69% of claimants have committed to supporting proceedings under the bankruptcy process.
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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