A Texas bankruptcy case is on the verge of paying out billions to cancer patients and others who have health claims relating to talc, used in products like makeup and baby powder. However, a frantic effort by a set of trial lawyers has put the money for countless cancer patients and families in limbo.
The Red River case involves Johnson & Johnson and legal claims related to talc. The company has agreed to pay $8 billion, with an overwhelming majority of those who pressed claims against Johnson & Johnson voting in favor of unlocking that money. Yet, a last-minute attempt by the Alabama law firm Beasley Allen is trying to stop the deal by contesting the votes.
Beasley Allen’s actions are similar to their past behavior in other major bankruptcies, such as the Boy Scouts of America bankruptcy, where they tried to sway the voting process in their favor to obtain a special payout. This dynamic is playing out again, with cancer patients being targeted and Beasley Allen sitting center stage.
The firm has a reputation for showing up only when billions are on the line and favoring more lawsuits over settling. Their behavior raises concerns that trial lawyers are wrecking the bankruptcy system and putting themselves at the expense of consumers.
As a consumer advocate, I emphasize that it’s not okay for Beasley Allen to try to block this $8 billion payout to victims. This highlights the need to find a way to rein in law firms like Beasley Allen and make it easier to get money to those who need it most.
Source: https://www.dailysignal.com/2025/02/19/next-big-trial-lawyer-bankruptcy-shakedown