Keller Postman Supports Resolution of Talcum Powder Litigation

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Jun 04, 2024, 10:02 ET

CHICAGO , June 4, 2024 /PRNewswire/ -- Today Keller Postman announced that it will support efforts to resolve the talcum powder litigation against Johnson & Johnson (J&J) via a pre-packaged bankruptcy plan. In May 2024, J&J announced that its subsidiary LLT Management LLC was proposing a prepackaged plan of reorganization to resolve its talc-related liabilities. Under the terms of the plan, a trust would be funded with over $5.4 billion in the first three years and more than $8 billion over the course of 25 years, which J&J calculates to have a net present value of $6.475 billion.

Keller Postman has reviewed the plan and plan documents. Based on its familiarity with the litigation and past engagement with MDL leadership firms, Keller Postman intends to support the plan. Keller Postman believes that this arrangement, if approved, would secure meaningful, timely recoveries for eligible clients who have been injured by J&J's talcum powder. This litigation has been proceeding for more than a decade. Over that time, 17 trials have reached a verdict and plaintiffs have recovered nothing in 16 out of 17 of those trials. Keller Postman believes that, barring a global settlement, litigation is likely to continue for the foreseeable future. The plan, as proposed by J&J, allocates substantial resources to compensate injured clients, including an upfront $2 billion contribution into the trust, and provides a near-term path to recovery for many individuals. According to the plan's disclosures, historical settlements for ovarian-cancer talc cases by J&J have ranged from "$50,000 to $80,000" net of certain costs. The plan estimates that similar cases would receive "an average recovery of between $50,000 and $200,000, with an average value between $75,000 and $150,000 being more likely" if the plan is confirmed. As a result, Keller Postman will be encouraging all its eligible clients—including clients who are jointly represented by Beasley Allen and other firms who currently oppose the plan—vote to accept the proposed reorganization plan. We will be communicating this recommendation to our talc clients eligible for compensation under the plan.

SOURCE Keller Postman LLC