Attorneys Vow to Oppose J&J’s Third Bankruptcy Attempt

Attorneys representing tens of thousands of women with ovarian cancer linked to use of Johnson & Johnson (NYSE:JNJ) talc products say they will immediately seek dismissal of a pre-packaged bankruptcy that the company filed earlier today in Texas.

In its filing, the New Jersey-based pharmaceutical giant claims that approximately 83% of those plaintiffs surveyed by the company have agreed to the plan’s terms, a percentage that forms the legal threshold for launching a so-called “pre-pack” bankruptcy.

“We view this so-called vote as another fraudulent effort by J&J to manipulate the bankruptcy process and minimize the legitimate claims of ovarian cancer victims,” says Andy Birchfield of the Beasley Allen Law Firm. “It’s preposterous for a company valued at $400 billion, with $90 billion in annual revenue, to resort to bankruptcy to unfairly compensate the women whose lives it has irreparably harmed.”

The Financial Reality

Even if the amount that J&J proposes to pay plaintiffs as part of its bankruptcy plan were confined to scientifically sound, Daubert-tested claims (the legal standard for scientific evidence), the average compensation per claim would still be significantly less than even the medical costs to treat most ovarian cancer patients.

"This proposed compensation is a gross undervaluation," said Birchfield. "Ovarian cancer claims involve measurable costs that are far greater than what is being offered."

• Medical expenses for treating ovarian cancer can range from more than $1.5 million to less than $50,000, depending on the age of the victim and the stage of the cancer.
• The weighted average of medical costs for treating ovarian cancer is more than $220,000. Likewise, lost wages are objective and calculable.
• Lost wages for ovarian cancer claimants average more than $230,000.

Beyond these objective costs, attorneys note there are subjective factors such as pain and suffering and punitive damages that merit consideration. The pain and agony that ovarian cancer victims experience is staggering – certainly to be valued at a multiple of the medical costs.

Also, attorneys representing ovarian cancer victims question the integrity of the bankruptcy voting process. “We believe there are major irregularities in J&J’s voting process that were designed to make a mockery of the pre-pack process, including votes from people who have cancer, but not ovarian cancer,” Birchfield said. “There’s no reason for them to be a part of this process.”