Nearly 40,000 lawsuits have been filed against Johnson & Johnson (J&J), alleging that the company's baby powder causes cancer. The lawsuits claim that customers became sick with mesothelioma or ovarian cancer after being exposed to asbestos contained in talcum powder.
If I were an enterprising district attorney, in a place where one of the plaintiffs in the $2 billion verdict lived, I would indict the directors and senior management of J&J on criminal fraud charges. Do it in a state court. There are practical limits on how far you might get, but public support will be high. Even if all you can get is to pull these guys passports (flight risk) for a few years while it grinds through the courts, we need some personal exposure for the robber barons.
Long ago, maybe 1970, I was in a nursing program, and one thing I will always remember is that they would not use baby powder in the neonatal ward. They would only use cornstarch. From then on, I did the same if I needed some kind of soothing powder for the skin. So this awareness was widespread and is not new. J&J has a lot to answer for.
These bankruptcy scams have a long history, though none so brazen as the Texas two step. In Texaco v. pennzoil, the Supreme Court upheld a bankruptcy filing naming only one of many creditors, so the bankruptcy court only heard the claim of one creditor, while all other creditors were untouched. Republican congresscritters have created bankruptcy loopholes for decades, carving out specific kinds of debts, like education loans, for special protection of banks. Creating higher barriers to bankruptcy protection for consumer debts over commercial debts is another example. Newer Chapter 13 provisions almost eliminates the discharge protections envisioned by the writers of the Constitution when the bankruptcy requirement was included. The Republicans are ravaging our persons our economy and our rights continually.
I'm really curious about the circumstances by which Texas's "divisive merger" principle came to be. The law seems like a deliberate concession to big businesses, so I'm wondering how it could be framed as legitimate in the first place.
J&J are one of the fastest growing cancer drug manufacturers in the market. Is it a coincidence that their products are creating future customers for another branch of their company?
A brilliant dissection of this complex matter - thanks, Judd. This information is discouraging, but it's also empowering because, thanks to your efforts, I can understand WTF is going on. Does the arc of history bend towards justice? I fervently hope so. In the meantime, I am never setting foot in the state of Texas.
The more I learn, the harder it is to interact with too many people I’ve known for years. As I look at it, I see many of them have already left me. They could see I wasn’t on the same page with them and moved on. I tried to keep some of the relationships going because they were family members. Ugh. I’ve learned now that “Let’s not talk politics” is code for, “I know you wouldn’t approve of what I’m doing so let’s just not bring it up.” So much food for thought in this post, Judd. Thank you.
Neal Katyal, former Obama Solicitor General, retained for an eye watering hourly rate. What are the chances he ends up arguing this case in front of SCOTUS? JnJ will likely get their $$ worth.
Fascinating that the maneuver by J&J is called “The Texas Two-Step”. Corporations are just as bad as ever with walking away from their liabilities. I hope that justice prevails for those harmed by the J&J aspestos-ladened talc. But I won’t hold my breath.
Thanks for another expose of corporate greed and malfeasance. As always in the United Corporations of America, profit is privatized, and cost (too often human health and lives) is socialized. J&J will appeal and delay and maneuver, whittling down the final settlement for so long, many of the plaintiffs will be dead. (Reference the Exxon Valdez oil spill as example.) I’m so angry that corporations are legally seen as persons and their political donations as free speech—but only to a point. No corp execs ever go to jail or are ordered to sell off assets and pay out shareholders and dissolve. I just watched an episode of American Greed last night detailing the corporate culture (all about share price) at Boeing that left 346 people dead. Despite evidence of Boeing knowing that there was a high likelihood of many future crashes of their 357Max and Congressional hearings that laid it all out, no one went to jail, no one was fired, and a settlement was reached. Victims were awarded $500 million, a fine of $243.6 million was imposed, and compensation of $1.7 billion was awarded to the airlines. Boeing is valued at $83 billion today. Their CEO at the time was allowed to “resign” with compensation and pension benefits totaling $62 million.
Rant over. Sorry to swing so far outside the current story here.
"Some members of Congress are planning to introduce legislation to outlaw the scheme"
However, the jungle capitalist GOP will never allow any legislation to slow their gravy train of corporate corruption.
I worked at J&J for a year. Their "Credo" is said to guide everything they do.
https://www.jnj.com/credo/
The cynicism was so palpable I left as soon as I could.
If I were an enterprising district attorney, in a place where one of the plaintiffs in the $2 billion verdict lived, I would indict the directors and senior management of J&J on criminal fraud charges. Do it in a state court. There are practical limits on how far you might get, but public support will be high. Even if all you can get is to pull these guys passports (flight risk) for a few years while it grinds through the courts, we need some personal exposure for the robber barons.
Long ago, maybe 1970, I was in a nursing program, and one thing I will always remember is that they would not use baby powder in the neonatal ward. They would only use cornstarch. From then on, I did the same if I needed some kind of soothing powder for the skin. So this awareness was widespread and is not new. J&J has a lot to answer for.
These bankruptcy scams have a long history, though none so brazen as the Texas two step. In Texaco v. pennzoil, the Supreme Court upheld a bankruptcy filing naming only one of many creditors, so the bankruptcy court only heard the claim of one creditor, while all other creditors were untouched. Republican congresscritters have created bankruptcy loopholes for decades, carving out specific kinds of debts, like education loans, for special protection of banks. Creating higher barriers to bankruptcy protection for consumer debts over commercial debts is another example. Newer Chapter 13 provisions almost eliminates the discharge protections envisioned by the writers of the Constitution when the bankruptcy requirement was included. The Republicans are ravaging our persons our economy and our rights continually.
Watch every scumbag republican vote against this. We are doomed as a nation. The corporate greed in the senate has completely compromised America.
Robert “Woody” Johnson, heir to the J&J fortune was a big donor to Trump, and is part Charles Koch’s billionaire donor network . So there’s that.
I'm really curious about the circumstances by which Texas's "divisive merger" principle came to be. The law seems like a deliberate concession to big businesses, so I'm wondering how it could be framed as legitimate in the first place.
J&J are one of the fastest growing cancer drug manufacturers in the market. Is it a coincidence that their products are creating future customers for another branch of their company?
https://www.barrons.com/articles/johnson-johnson-stock-pipeline-cancer-drugs-51621521358
A brilliant dissection of this complex matter - thanks, Judd. This information is discouraging, but it's also empowering because, thanks to your efforts, I can understand WTF is going on. Does the arc of history bend towards justice? I fervently hope so. In the meantime, I am never setting foot in the state of Texas.
The more I learn, the harder it is to interact with too many people I’ve known for years. As I look at it, I see many of them have already left me. They could see I wasn’t on the same page with them and moved on. I tried to keep some of the relationships going because they were family members. Ugh. I’ve learned now that “Let’s not talk politics” is code for, “I know you wouldn’t approve of what I’m doing so let’s just not bring it up.” So much food for thought in this post, Judd. Thank you.
Brilliant report, Judd!
Neal Katyal, former Obama Solicitor General, retained for an eye watering hourly rate. What are the chances he ends up arguing this case in front of SCOTUS? JnJ will likely get their $$ worth.
Fascinating that the maneuver by J&J is called “The Texas Two-Step”. Corporations are just as bad as ever with walking away from their liabilities. I hope that justice prevails for those harmed by the J&J aspestos-ladened talc. But I won’t hold my breath.
Thanks for another expose of corporate greed and malfeasance. As always in the United Corporations of America, profit is privatized, and cost (too often human health and lives) is socialized. J&J will appeal and delay and maneuver, whittling down the final settlement for so long, many of the plaintiffs will be dead. (Reference the Exxon Valdez oil spill as example.) I’m so angry that corporations are legally seen as persons and their political donations as free speech—but only to a point. No corp execs ever go to jail or are ordered to sell off assets and pay out shareholders and dissolve. I just watched an episode of American Greed last night detailing the corporate culture (all about share price) at Boeing that left 346 people dead. Despite evidence of Boeing knowing that there was a high likelihood of many future crashes of their 357Max and Congressional hearings that laid it all out, no one went to jail, no one was fired, and a settlement was reached. Victims were awarded $500 million, a fine of $243.6 million was imposed, and compensation of $1.7 billion was awarded to the airlines. Boeing is valued at $83 billion today. Their CEO at the time was allowed to “resign” with compensation and pension benefits totaling $62 million.
Rant over. Sorry to swing so far outside the current story here.
I thought, "Is that THE Neal Katyal?" Yes, indeed. Yikes!