January 30, 2023

Johnson & Johnson Bankruptcy Tactics Rejected

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Asbestos
Legal News

Published: January 30, 2023 · Last Updated: August 28, 2025

Big news came out of bankruptcy court last week regarding the Johnson & Johnson asbestos-related claims. On January 30th, a judge shot down J&J’s attempt to utilize the bankruptcy court system in regard to their talc lawsuits.

Johnson & Johnson attempted to use a niche Texas law to funnel their asbestos-related claims into bankruptcy court and protect the company’s larger assets. The move, known as the Texas Two-Step, severed Johnson and Johnson’s talc department into a wholly separate company, which then filed for bankruptcy.

J&J’s utilization of the Texas Two-Step halted more than 38,000 asbestos-related lawsuits concerning their baby powder and other talc-based products that were contaminated with asbestos. This new decision by the U.S. 3rd Circuit Court of Appeals dismissed all the bankruptcy filed by the J&J subsidiary. Before attempting this move, Johnson & Johnson faced over 3.5 billion in asbestos-related verdicts and settlements.

This decision is a positive one for those who utilized asbestos-contaminated talc products produced by Johnson & Johnson. You can read more about the decision from routers – U.S. court rejects J&J bankruptcy strategy for thousands of talc lawsuits.

If you or a loved one has been diagnosed with an asbestos-related disease after the use of Johnson & Johnson talcum-based products, you may be entitled to compensation. Call our office today or fill out a free case evaluation.