美国国家公共电台 NPR--J&J tried to block lawsuits from 40,000 cancer patients. A court wants answers

J&J tried to block lawsuits² from 40,000 cancer patients. A court wants answers

Transcript³

An attorney for Johnson and Johnson faced probing questions Monday over the corporation's use of a controversial bankruptcy⁴ maneuver⁵ that has frozen tens of thousands of lawsuits linked to Johnson's baby powder.

During the hearing, members of a three-judge panel of the United States Court of Appeals for the Third Circuit in Philadelphia asked whether J&J had used the legal strategy to gain "a litigation advantage" over roughly 40,000 cancer patients who have sued the company.

The cases were filed mostly by women. They claim Johnson's iconic talc baby powder was contaminated with asbestos, which caused their mesothelioma or ovarian cancers.

J&J, which announced last month it would suspend all talc baby powder sales worldwide, has denied any wrongdoing.

Attorney Neal Katyal, representing the company, responded by arguing that the bankruptcy maneuver — known as the "Texas two-step" — would benefit victims by producing a faster settlement, possibly worth as much as $61 billion.

Katyal acknowledged criticism that a "big company that has all these profits is somehow trying to evade⁶ liability."

But he said that if the tsunami⁷ of baby powder-related cases were allowed to play out in civil courts it would create legal chaos⁸ and "reduce the number of dollars available to claimants."

Johnson & Johnson headquarters in New Brunswick, N.J., in 2020.

Mark Kauzlarich/Bloomberg via Getty Images

The "Texas two-step" and how it worked for J& J

Here's how the legal maneuver known as the "Texas two-step" worked in this case.

In October of last year, J&J — which is headquartered in New Jersey⁹ — used a wrinkle in Texas state law to spin off a new subsidiary called LTL.

The healthcare giant pushed all baby powder-related liabilities onto the new firm's books.

Within a matter of days, LTL relocated from Texas to North Carolina and filed for bankruptcy, effectively halting the baby powder lawsuits.

The U.S. Appeals for the Third Circuit will eventually rule on whether LTL's bankruptcy was filed in good faith and whether it should shield J and J from baby powder related lawsuits.

During Monday's session, attorneys representing women with claims against J&J slammed the healthcare giant's legal strategy.

"Talc victims ... are mired¹⁰ in bankruptcy as they die," said attorney Jeffrey Lamken.

He noted¹¹ that during the LTL bankruptcy process, Johnson and Johnson has paid out billions of dollars to shareholders¹² and for stock buy-backs - a practice not allowed for firms that are actually bankrupt.

Meanwhile, women who filed cancer lawsuits against the corporation have been forced to wait and "can only get more desperate as they face medical expenses and come closer to their own deaths," Lamken argued.

Attorneys representing cancer patients say the civil court system, not the bankruptcy court, is the proper venue¹³ for establishing the corporation's liability.

A portrait of Hanna Wilt¹⁴ outside her home on Nov. 19, 2021 in Manasquan, NJ.

Jackie Molloy for NPR

This case that could reshape civil justice in the U.S

The U.S. Department of Justice has also challenged J&J's bankruptcy maneuver.

On Monday, a DOJ attorney argued that if this legal strategy is upheld by the courts, it would open the door to other non-bankrupt companies and wealthy individuals using similar maneuvers¹⁵ to avoid liability.

"If Johnson and Johnson can get away with this bankruptcy, what's to stop any other company in America from doing the same thing?" asked Sean Janda, an attorney representing the U.S. Trustee, a division of DOJ that oversees¹⁶ bankruptcy cases.

J&J's strategy has also sparked criticism from some members of Congress as well as public outrage¹⁷.

Speaking late last year, Hanna Wilt who was sick with mesothelioma voiced fury over the delay in her baby powder lawsuit¹ against the company.

"What I see is who can play the game best," Wilt told NPR. "Big corporations trying to work the system in a way they don't have to take full responsibility is not something new."

Wilt died in February of this year at age 27.

It's unclear how quickly the Third Circuit will rule, though judges tend to move quickly in bankruptcy-related cases. Legal experts have suggested that regardless of the outcome, an appeal will likely be filed to the US Supreme¹⁸ Court.

1 lawsuit   

n.诉讼，控诉

参考例句：

• They threatened him with a lawsuit.他们以诉讼威逼他。
• He was perpetually involving himself in this long lawsuit.他使自己无休止地卷入这场长时间的诉讼。

2 lawsuits   

n.诉讼( lawsuit的名词复数 )

参考例句：

• Lawsuits involving property rights and farming and grazing rights increased markedly. 涉及财产权，耕作与放牧权的诉讼案件显著地增加。 来自辞典例句
• I've lost and won more lawsuits than any man in England. 全英国的人算我官司打得最多，赢的也多，输的也多。 来自辞典例句

3 transcript   

n.抄本，誊本，副本，肄业证书

参考例句：

• A transcript of the tapes was presented as evidence in court.一份录音带的文字本作为证据被呈交法庭。
• They wouldn't let me have a transcript of the interview.他们拒绝给我一份采访的文字整理稿。

4 bankruptcy   

n.破产；无偿付能力

参考例句：

• You will have to pull in if you want to escape bankruptcy.如果你想避免破产，就必须节省开支。
• His firm is just on thin ice of bankruptcy.他的商号正面临破产的危险。

5 maneuver   

n.策略[pl.]演习；v.(巧妙)控制；用策略

参考例句：

• All the fighters landed safely on the airport after the military maneuver.在军事演习后，所有战斗机都安全降落在机场上。
• I did get her attention with this maneuver.我用这个策略确实引起了她的注意。

6 evade   

vt.逃避，回避；避开，躲避

参考例句：

• He tried to evade the embarrassing question.他企图回避这令人难堪的问题。
• You are in charge of the job.How could you evade the issue?你是负责人，你怎么能对这个问题不置可否？

7 tsunami   

n.海啸

参考例句：

• Powerful quake sparks tsunami warning in Japan.大地震触发了日本的海啸预警。
• Coastlines all around the Indian Ocean inundated by a huge tsunami.大海啸把印度洋沿岸地区都淹没了。

8 chaos   

n.混乱，无秩序

参考例句：

• After the failure of electricity supply the city was in chaos.停电后，城市一片混乱。
• The typhoon left chaos behind it.台风后一片混乱。

9 jersey   

n.运动衫

参考例句：

• He wears a cotton jersey when he plays football.他穿运动衫踢足球。
• They were dressed alike in blue jersey and knickers.他们穿着一致，都是蓝色的运动衫和灯笼短裤。

10 mired   

abbr.microreciprocal degree 迈尔德（色温单位）v.深陷( mire的过去式和过去分词 )

参考例句：

• The country was mired in recession. 这个国家陷入了经济衰退的困境。
• The most brilliant leadership can be mired in detail. 最有才干的领导也会陷于拘泥琐事的困境中。 来自《现代汉英综合大词典》

11 noted   

adj.著名的，知名的

参考例句：

• The local hotel is noted for its good table.当地的那家酒店以餐食精美而著称。
• Jim is noted for arriving late for work.吉姆上班迟到出了名。

12 shareholders   

n.股东( shareholder的名词复数 )

参考例句：

• The meeting was attended by 90% of shareholders. 90%的股东出席了会议。
• the company's fiduciary duty to its shareholders 公司对股东负有的受托责任

13 venue   

n.犯罪地点，审判地，管辖地，发生地点，集合地点

参考例句：

• The hall provided a venue for weddings and other functions.大厅给婚礼和其他社会活动提供了场所。
• The chosen venue caused great controversy among the people.人们就审判地点的问题产生了极大的争议。

14 wilt   

v.(使)植物凋谢或枯萎；(指人)疲倦，衰弱

参考例句：

• Golden roses do not wilt and will never need to be watered.金色的玫瑰不枯萎绝也不需要浇水。
• Several sleepless nights made him wilt.数个不眠之夜使他憔悴。

15 maneuvers   

n.策略，谋略，花招( maneuver的名词复数 )

参考例句：

• He suspected at once that she had been spying upon his maneuvers. 他立刻猜想到，她已经侦察到他的行动。 来自辞典例句
• Maneuvers in Guizhou occupied the Reds for four months. 贵州境内的作战占了红军四个月的时间。 来自辞典例句

16 oversees   

v.监督，监视( oversee的第三人称单数 )

参考例句：

• She oversees both the research and the manufacturing departments. 她既监督研究部门又监督生产部门。 来自《简明英汉词典》
• The Department of Education oversees the federal programs dealing with education. 教育部监管处理教育的联邦程序。 来自互联网

17 outrage   

n.暴行，侮辱，愤怒；vt.凌辱，激怒

参考例句：

• When he heard the news he reacted with a sense of outrage.他得悉此事时义愤填膺。
• We should never forget the outrage committed by the Japanese invaders.我们永远都不应该忘记日本侵略者犯下的暴行。

18 supreme   

adj.极度的，最重要的；至高的，最高的

参考例句：

• It was the supreme moment in his life.那是他一生中最重要的时刻。
• He handed up the indictment to the supreme court.他把起诉书送交最高法院。