A New Jersey federal judge has dismissed a lawsuit that claimed Johnson & Johnson (JNJ) engaged in fraud by using bankruptcy to settle tens of thousands of cases alleging that its talc-based baby powder and other products caused cancer.
U.S. District Judge Michael Shipp dismissed the proposed class action lawsuit filed in the New Jersey federal court in May 2024 by five cancer victims suing the pharma giant over its talc-based products.
The plaintiffs alleged that the company’s bankruptcy strategy put billions of dollars out of the plaintiffs’ reach in order to “hinder, delay, and defraud these women and prevent them from ever having their day in court.”
Judge Shipp ruled on Thursday that the cancer victims didn’t have standing to sue as they couldn’t assert that they were harmed by J&J’s (JNJ) bankruptcy maneuver, which prevented their cases from advancing in courts between October 2021 and March 2025.
“Their claimed injury is entirely hypothetical, as it is contingent on plaintiffs’ first prevailing in the talc litigation,” Shipp said.
Erik Haas, J&J’s (JNJ) Worldwide Vice President of Litigation, told Reuters that the court correctly denied the “wholly meritless claims.” Patricia Kipnis, an attorney representing the five plaintiffs, said that she and her co-counsel “disagree with the decision and will be reviewing it with our clients to discuss an appeal.”
New Brunswick, New Jersey-based J&J’s (JNJ) attempts to use bankruptcy to settle talc-related cancer claims have been rejected three times by federal judges. Last week, JNJ shares dipped after a court-designated special master recommended that plaintiffs accusing the company of causing their cancers with its talc-based products could use expert testimony to support their claims.