Johnson & Johnson JNJ faced a legal setback on Friday when a New Jersey judge rejected its bid to disqualify the law firm Beasley Allen from representing plaintiffs who claim the company’s talc products caused their cancer.
This decision complicates Johnson & Johnson’s attempt to resolve over 60,000 claims through a $6.48 billion pre-packaged bankruptcy plan, Reuters reports.
Judge John Porto of the New Jersey Superior Court ruled that Johnson & Johnson had not provided “any credible basis” for its allegations that Beasley Allen partner Andy Birchfield formed an unethical alliance with a former Johnson & Johnson lawyer.
In a related development, U.S. Magistrate Judge Rukhsanah Singh, overseeing talc cases in New Jersey federal court, has ordered Johnson & Johnson to explain why she should not also adopt Porto’s findings.
Related: Court Rules Against Johnson & Johnson In Talcum Powder Cancer Study Case.
This comes as she considers a similar motion to disqualify Beasley Allen from federal cases. Birchfield expressed his satisfaction with the state court’s decision, stating that it allows them to continue seeking justice for thousands of women and families affected by Johnson & Johnson’s talc products.
Citing Erik Haas, Johnson & Johnson’s worldwide vice president of litigation, Reuters highlighted the company’s intention to appeal the ruling.
It asserts that it is unethical for plaintiffs’ counsel to collaborate with a former defense counsel on the same issues and claims.
In December, Johnson & Johnson filed motions to disqualify Beasley Allen, accusing Birchfield of unethical conduct by working with James Conlan, a former partner at Faegre Drinker Biddle & Reath who had worked on Johnson & Johnson’s talc litigation.
Johnson & Johnson claimed Conlan must have disclosed confidential information to Birchfield, but Judge Porto found no evidence to support this.
Johnson & Johnson is currently seeking votes for its bankruptcy plan, which requires the support of 75% of claimants. The voting deadline is next Friday.
Although previous attempts to settle the case in bankruptcy have been rejected, Johnson & Johnson remains confident in its strategy.
Price Action: JNJ stock closed at $154.73 on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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