On Monday, Judge Christopher Lopez of the U.S. Bankruptcy Court in Houston denied a proposed $9 billion settlement plan from J&J subsidiary Red River Talc LLC. The plan was tied to a prepackaged Chapter 11 bankruptcy filing aimed at resolving tens of thousands of claims alleging that J&J’s talc-based products caused ovarian cancer and mesothelioma.

Judge Lopez ruled that J&J and its subsidiary used a flawed voter solicitation process when seeking approval from personal injury claimants—a critical misstep that led to the plan’s rejection.

Had it gone through, the deal would have marked one of the largest mass tort settlements in U.S. history.

Following the ruling, J&J announced that it will not appeal the decision. Instead, the company says it will return to civil court to fight the claims one by one, describing them as “meritless.” As part of the decision, J&J also plans to reverse approximately $7 billion of the reserve it had previously set aside for the settlement.

Shares of J&J fell more than 3% in pre-market trading Tuesday as investors reacted to the news.

This is the third time a J&J-affiliated company has attempted—and failed—to use bankruptcy court to settle talc-related lawsuits. A previous offer made in 2023 proposed to pay $6.48 billion over 25 years to resolve similar claims.

Despite these efforts, J&J maintains it has made significant progress elsewhere:

• 95% of filed mesothelioma cases have been settled
• All state consumer protection claims are resolved
• Disputes with talc suppliers have been concluded

J&J has faced thousands of lawsuits over its once-popular talc-based baby powder. Plaintiffs allege that long-term use of the product, especially for feminine hygiene, led to ovarian cancer or mesothelioma due to alleged asbestos contamination.

The backlash led to a sharp decline in sales and, ultimately, J&J pulled the talc-based product from U.S. shelves in 2020. By 2022, the company had announced it would end global sales of talc-based baby powder altogether, shifting exclusively to cornstarch-based alternatives.

At the time, J&J had claimed its reorganization plan would resolve 99.75% of all talc-related claims in the U.S., with remaining mesothelioma suits to be handled separately.

Source: AP News – Bankruptcy judge denies J&J settlement plan related to baby powder containing talc

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A Florida jury has ruled against Starbucks, ordering the coffee giant to pay $50 million in damages to a delivery driver who suffered severe burns from a spilled hot beverage. The verdict highlights concerns over corporate responsibility and product safety.

Incident Details: Coffee Spill Leads to Severe Burns

The case stems from a 2021 incident in which Michael Turner, a 45-year-old delivery driver, picked up an order from a Starbucks drive-thru in Jacksonville, Florida. As an employee handed him a cup of hot coffee, the lid allegedly popped off, causing the scalding liquid to spill onto Turner’s lap. He suffered second-degree burns on his thighs and groin, requiring extensive medical treatment.

Turner’s lawyers argued that Starbucks failed to ensure its cup lids were properly secured, leading to a preventable and painful injury. Starbucks, however, contended that its employees followed standard procedures and that Turner was partly responsible for the spill.

Legal Battle and Jury Verdict

After a lengthy trial, the jury sided with Turner, awarding him $50 million in damages—one of the largest personal injury verdicts against Starbucks. The compensation covers medical expenses, lost wages, and pain and suffering.

Turner’s attorney, Lisa Morgan, emphasized that the case was not just about financial compensation but also about holding corporations accountable for safety standards.

“This verdict sends a clear message: companies must take product safety seriously,” Morgan said.

Starbucks’ Response

Starbucks has expressed disappointment in the ruling and is considering an appeal. A company spokesperson stated that Starbucks is committed to customer and employee safety and maintains strict procedures for serving hot beverages.

“We are reviewing our next steps and will continue to prioritize safety in all of our stores,” the spokesperson added.

Hot Coffee Lawsuits: A Recurring Issue?

This case is reminiscent of the famous 1992 McDonald’s hot coffee lawsuit, in which an elderly woman was awarded $2.9 million after suffering third-degree burns from a spilled cup of coffee. The lawsuit led to widespread discussions about corporate negligence and consumer protection.

Starbucks has faced multiple lawsuits over coffee-related burns in recent years, with plaintiffs alleging that improperly secured lids, defective cups, or excessive temperatures led to injuries.

What Happens Next?

While Starbucks considers an appeal, legal experts suggest this case could prompt businesses to reassess safety practices and improve their handling of hot beverages. Consumer advocates say the ruling underscores the importance of corporate responsibility in preventing avoidable injuries.

For now, Turner’s legal victory serves as a stark reminder of the risks associated with serving and handling extremely hot drinks—and the potential consequences for companies that fail to address them.

Source: Starbucks ordered to pay $50 million to delivery driver burned by hot beverage

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