Judge Craig Whitley of North Carolina delayed the cases for 60 days and ruled that they should be heard in New Jersey, where Johnson & Johnson’s headquarters are, not in North Carolina, according to NPR.
The judge’s decision comes after Johnson & Johnson made a controversial bankruptcy move last month, creating a company called LTL and moving all of its baby powder-related liability to it. That company then filed for bankruptcy in Charlotte, N.C. The bankruptcy maneuver limits efforts to recover damages for those who claim to have been harmed by the baby powder, according to consumer advocates.
The judge’s decision to delay the cases for only 60 days is a “major setback for J&J,” Adam Levitin, a bankruptcy expert at Georgetown University in Washington, D.C., posted on Twitter, NPR reported.
Johnson & Johnson didn’t respond to NPR’s request for a comment, but LTL told the news organization: “Although we believe this case was properly venued in North Carolina, we will continue to work with all parties to seek an efficient and equitable resolution.”
The company also maintains that Johnson & Johnson’s baby powder is “safe, does not contain asbestos and does not cause cancer.”
The 60-day delay will allow a new judge in New Jersey to get up to speed on the case, NPR reported.
Also on Nov. 10, the U.S. Senate Judiciary Committee sent a letter to Johnson & Johnson urging it to reverse the bankruptcy move, according to NPR.
“We urge you to immediately reverse course so that tens of thousands of consumers can have their fair day in court,” the letter said.
The lawmakers also demanded Johnson & Johnson answer several questions about its legal strategy, NPR reported.
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