Johnson & Johnson’s failed attempt to resolve over 60,000 talc-related lawsuits through bankruptcy has significantly impacted plaintiff law firms that invested heavily in the strategy. The collapse of J&J’s third bankruptcy effort means these firms must now rush to file tens of thousands of civil suits before deadlines expire—an endeavor that could cost millions in filing fees and resources, with no guaranteed returns.
Many firms had backed a proposed $9 billion Chapter 11 settlement, expecting large contingency payouts. Now, attorneys are facing the reality of taking these complex, expensive cases to trial—some with limited financial runway due to litigation funding arrangements. “On the financing side, this is a nightmare,” said Steve Nober, CEO of Consumer Attorney Marketing Group, highlighting the high-stakes pressure on firms in the mass tort space.
The situation underscores both the legal and financial risks in mass tort litigation, as well as the limits of using bankruptcy to resolve widespread product liability claims.
