Bankruptcy Filing Rejected:
On April 1, 2025, U.S. Bankruptcy Judge Christopher Lopez in Houston rejected J&J’s third attempt to resolve over 60,000 talc-related lawsuits through a $9 billion prepackaged bankruptcy plan filed by its subsidiary, Red River Talc LLC. The judge cited a flawed and rushed voting process that failed to secure genuine consent from claimants and improperly sought to release claims against non-bankrupt entities, including retailers and J&J’s spinoff, Kenvue. Following the ruling, J&J announced it would not appeal and instead would return to the civil court system to contest the claims, asserting that its talc products are safe. The company also reversed approximately $7 billion previously reserved for the proposed settlement.

Ongoing Litigation:
As of April 2025, approximately 58,208 talcum powder lawsuits are pending in multidistrict litigation (MDL 2738) in the U.S. District Court for the District of New Jersey, overseen by Judge Michael A. Shipp . These cases primarily involve allegations that prolonged use of J&J’s talc-based products caused ovarian cancer and mesothelioma. In response to the bankruptcy dismissal, plaintiffs’ attorneys have filed motions requesting either a reversal of the decision or a referral to mediation, aiming to find a resolution outside of bankruptcy proceedings.​

Future Outlook:
The rejection of the bankruptcy plan led to a decline in J&J’s stock by approximately 5%. The company maintains that the claims are without merit and has accused certain law firms of pursuing financially motivated litigation. J&J ceased selling talc-based baby powder in the U.S. in 2020 and globally in 2022, transitioning to cornstarch-based alternatives. With the bankruptcy route closed, J&J faces continued litigation in civil courts, where plaintiffs seek to hold the company accountable for alleged health risks associated with its talc products.