- Law companies
- Related paperwork
- Group of non-public damage claims deemed questionable by judge
- Without votes, Imerys Talc should renew restructuring talks
The firm and legislation agency names proven above are generated mechanically based mostly on the textual content of the article. We are enhancing this function as we proceed to check and develop in beta. We welcome suggestions, which you’ll be able to present utilizing the suggestions tab on the appropriate of the web page.
(Reuters) – The judge overseeing Imerys Talc America Inc’s bankruptcy on Wednesday eradicated greater than 15,000 private damage claimants’ votes on the previous Johnson & Johnson talc supplier’s proposed Chapter 11 plan, forcing the corporate to revisit its restructuring technique.
U.S. Bankruptcy Judge Laurie Selber Silverstein issued a 36-page decision on J&J’s request to dam adjustments to 1000’s of votes on the plan. Imerys filed for bankruptcy in 2019 to deal with widespread litigation alleging its talc induced mesothelioma and ovarian most cancers and is pursuing a plan to compensate victims.
With the ruling from Silverstein, Imerys doesn’t have the votes it must safe part of the plan that basically requires private damage claims in a bankruptcy to be dealt with solely by means of a belief and block claimants from suing insurance coverage carriers and different associated events sooner or later. The provision is a key facet of the plan.
Imerys stated in an announcement on Wednesday that it’s evaluating subsequent steps.
“While we’re disillusioned by the court docket’s ruling, we stay dedicated to resolving our historic talc-related liabilities in a simply method for all concerned events,” the company said.
Imerys will likely try to work with J&J, insurers and other opponents of the deal on an amended plan.
J&J, which has also faced extensive litigation over its talc products and has denied wrongdoing, argues that Imerys is trying to make it easier for cancer victims to sue J&J instead. J&J did not immediately respond to a request for comment.
In Wednesday’s decision, Silverstein rejected a request by a law firm that represents personal injury claimants to change its 15,719 votes against the plan to accept the plan. However, she also refused to let the “no” votes stand, saying she would consider them withdrawn.
She took issue with the method in which the firm, Bevan & Associates, collected and submitted the votes in the first place, which was done without consulting individual claimants. Attorney Thomas Bevan testified at a hearing in September that he submitted a master ballot on behalf of all of his clients and believed they had all “likely” been exposed to the company’s talc products.
Silverstein said it’s not clear the Bevan clients even have valid claims against Imerys because the firm did not conduct due diligence on whether they’d been exposed to the company’s talc.
“In different phrases, Bevan & Associates merely printed out a listing of its shoppers in excel spreadsheet format and slapped it behind a Master Ballot,” the judge wrote.
Bevan called the judge’s statements “attention-grabbing” and said he would satisfy the judge’s concerns with respect to future votes in the Imerys case.
Imerys, once the U.S.-based arm of French group Imerys SA, was sold to Magris Resources Canada Inc for $223 million in 2020. Those proceeds will go to the trust that, under the company’s proposed plan, will pay personal injury claims.
J&J in recent months has explored a plan to offload liabilities from widespread talc-related litigation into a new business that would then be placed in bankruptcy, as reported by Reuters.
The case is In re Imerys Talc America Inc., U.S. Bankruptcy Court, District of Delaware, No. 19-10289.
For Imerys: Jeffrey Bjork, Kimberly Posin, Helena Tseregounis and Richard Levy of Latham & Watkins; and Mark Collins, Michael Merchant, Amanda Steele and Brett Haywood of Richards, Layton & Finger
For Johnson & Johnson: Diane Sullivan, Gary Holtzer, Ronit Berkovich and Ted Tsekerides of Weil, Gotshal & Manges; and Patrick Jackson of Faegre Drinker Biddle & Reath
Judge mulls Johnson & Johnson bid to block vote changes in ex-talc supplier bankruptcy
EXCLUSIVE – J&J exploring putting talc liabilities into bankruptcy