Levy Konigsberg Sues Kenvue in 116 Mesothelioma Johnson's Baby Powder Lawsuits

Levy Konigsberg has filed 116 mesothelioma cases against J&J's new consumer health spin-off, Kenvue (NYSE: KVUE)

NEW YORK, June 15, 2023 /PRNewswire/ -- Levy Konigsberg, a leading national law firm representing victims of corporate misconduct, has sued J&J's new consumer health spin-off, Kenvue, in 116 Johnson's Baby Powder mesothelioma cases.  Kenvue was initially listed in May in the New York Stock Exchange (KVUE) as part of an initial public offering (IPO) at a $22 per share price.  The stock price has since risen to over $25 per share, giving the new consumer health company a market cap of over 48 billion.

Kenvue owns the Johnson's Baby product lines, which include well-known products such as Johnson's Baby Powder and Johnson's Baby Shampoo.  Kenvue's predecessor company, Johnson & Johnson Consumer, Inc., announced on May 19, 2020, that it would stop selling talc-based baby powder (and switch to a corn starch) in the United States and Canada.  This announcement came after the Food and Drug Administration (FDA) confirmed the presence of asbestos in Johnson's Baby Powder in October 2019.

A Middlesex County, New Jersey court recently denied J&J's motion to dismiss Kenvue as a newly-added party in cases filed in the long-running J&J talc powder litigation.  J&J argued that Kenvue is not liable as a successor to J&J's baby powder business.  J&J also argued that a bankruptcy proceeding filed by J&J's subsidiary, Legacy Talc Litigation (LTL) Management LLC prevented the newly filed talc baby powder cases against Kenvue from proceeding.  In denying the motion to dismiss, the Honorable Anna Viscomi allowed discovery of the claims against Kenvue, as well as two other J&J units (Janssen and J&J Holdco), to go forward.  In the Order, Judge Viscomi stated: "This has nothing to do with [the] LTL [bankruptcy] but all to do with the presently operating restructured companies, all of which are New Jersey Corporations… A full record must be developed based on appropriate discovery as to the successor liability issues."

J&J's spin-off of Kenvue, as the company now responsible for consumer health products including the Johnson's Baby product line, is the latest corporate transaction relating to J&J's baby powder business.  In October 2021, Johnson & Johnson Consumer, Inc. (JJCI), was split into two companies, with the talc liabilities directed to LTL.  In a matter of days, LTL then filed for bankruptcy, resulting in a stay of tens of thousands of lawsuits previously filed against J&J and its subsidiary JJCI.  The U.S. Court of Appeals for the Third Circuit dismissed the LTL bankruptcy in January 2023, finding that the case was filed in bad faith, but J&J directed LTL to re-file the bankruptcy just two hours after the first bankruptcy was dismissed. 

With J&J's shell subsidiary LTL currently in bankruptcy again, pre-trial activities in state court lawsuits are continuing against J&J and, now Kenvue, because those parties themselves did not file for bankruptcy.  According to a Securities and Exchange Commission (SEC) filing by Kenvue, J&J (and not LTL) has agreed to indemnify Kenvue for any talc-related liabilities.

Attorney Jerome Block of Levy Konigsberg stated:  "J&J's abuse of the bankruptcy system to delay jury trials for cancer victims must end. J&J cannot avoid jury trials through bad faith bankruptcies or corporate spin-offs. Kenvue is now profiting from the Johnson's Baby Powder business and is liable, along with Johnson & Johnson, under well-established New Jersey law."

J&J's attempt to use the bankruptcy system with a corporate maneuver known as the "Texas Two Step" has been widely criticized and the subject of U.S. Senate hearing.

Levy Konigsberg LLP has been representing victims of mesothelioma in civil lawsuits since 1985.  The firm represents more than 100 women and men diagnosed with asbestos-related cancers as the result of exposure to Johnson's Baby Powder.

Media Contact:

Jerome H. Block

jblock@levylaw.com

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SOURCE Levy Konigsberg