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Asbestos Bankruptcies May Fail Due to Recent J&J Ruling

Asbestos Bankruptcies May Fail Due to Recent J&J Ruling

Thousands upon thousands of victims have outstanding lawsuits against companies that have caused serious disease like cancer by selling products containing asbestos including Johnson & Johnson’s baby powder, but in recent months these corporations have continued to evade punishment. They’ve done this by using a legal strategy known as the “Texas Two-Step“, a tactic that has become increasingly popular since Johnson & Johnson used it to avoid paying cancer victims.

However, a recent ruling against J&J has legal experts wondering whether these companies could start to lose ground in court. Read on to learn more about the details of these cases and what the new developments might mean for victims. If you are struggling with an asbestos lawsuit, don’t hesitate to reach out: a New York asbestos lawsuit attorney at Buttafuoco & Associates can advise you on how to move ahead with your case.

A Long History of U.S. Asbestos Lawsuits

Since the 1970s, victims have been fighting companies they say caused their mesothelioma, a severe form of cancer that destroys the lungs. Asbestos lawsuits continued to grow over several decades, largely because health problems often don’t show up until years after asbestos exposure. The result was that many companies were bankrupted by paying victims significant amounts in damages.

In recent years, however, companies have fought back by using a legal strategy known as the “Texas Two-Step” to escape responsibility. In a nutshell, a company that has been accused of negligence will then divert lawsuits by creating a small subsidiary to absorb the lawsuits. Because these small subsidiaries cannot afford to pay out the settlements they are now responsible for, they declare bankruptcy. At this point, the corporation is off the hook. For example, J&J recently utilized the Texas Two-Step when they created a subsidiary known as LTI Management, then dumped 40,000 talcum powder lawsuits into the entity and declared it bankrupt, thus avoiding paying victims.

The increasingly popular use of the Texas Two-Step on the part of huge corporations has resulted in painful blows to families seeking compensation for their loved ones’ asbestos related diseases and deaths.

At Buttafuoco & Associates, we are fighting to stop these egregious behaviors and help victims receive the compensation they deserve. To get in touch with an mesothelioma lawsuit attorney in New York, call 1-800-NOW-HURT. We will discuss the details of your situation with you, tell you whether you have a case, and provide a way to move forward.

Have Recent Johnson & Johnson Talc Claims Turned the Tides?

On January 30th of this year, the Third US Circuit Court of Appeals in Philadelphia, in a verdict against Johnson & Johnson, ruled that a company cannot file bankruptcy unless it is actually in financial distress–which was certainly not the case with Johnson & Johnson.

While the road ahead for victims may have its challenges, experts believe the sneaky legal maneuver may soon be on its way out. Across the country, attorneys continue to band together to have the two-step legal maneuver reviewed, remove these cases from bankruptcy court, and allow victims to receive compensation for their injuries.

The fight won’t be easy, as corporations such as paper giant Georgia-Pacific are being represented by the same lawyers that defended Johnson & Johnson. So far, attorneys have helped Georgia-Pacific avoid over 60,000 lawsuits by stalling asbestos litigation and payouts to victims. In the meantime, the huge corporation continues to thrive.

How Can a Lawyer Help?

If you have been harmed by a large corporation’s negligent actions, an asbestos lawsuit attorney serving New York may be able to help, either through an individual lawsuit or a mass tort (where victims who have been similarly harmed by a single entity band together to recover compensation for damages).

At Buttafuoco & Associates, we have been fighting for victims’ rights for decades and will fight for yours as well. Get in touch with us today to tell us more about your case.

Call 1-800-NOW-HURT.

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