J&J Jury’s Cancer Verdict Ramps Up Pressure on Bankruptcy Vote | Bloomberg Law

Until the July 18 verdict, J&J has avoided jury decisions in cases litigating the health risks of its baby powder through controversial procedural safeguards in bankruptcy. However, this recent verdict is a curveball in J&J’s attempt to resolve all issues of liability in its bankruptcy proceedings. Following the $18.8 million jury award to Anthony Hernandez Valadez, the claimant in the California case, other claimants may refuse to agree to J&J’s plan of reorganization under Chapter 11 of the Bankruptcy Code. Under the proposed plan in bankruptcy, claimants like Hernandez Valadez may be facing much smaller settlements, prompting other plaintiffs and their counsel to consider trying their own cases outside of the bankruptcy proceedings. 

By awarding Anthony Hernandez Valadez millions, the California jury has thrown J&J a curveball and potentially influenced claimants to vote against the proposed $8.9 billion settlement designed to resolve tens of thousands of talc claims in LTL’s bankruptcy. It could also place pressure on the judge overseeing the case by inspiring others to try to pursue their claims in front of a jury.

Source: J&J Jury’s Cancer Verdict Ramps Up Pressure on Bankruptcy Vote