The Committee’s Bankruptcy professional, David Molton, and Talc Plaintiff Committee Member Representatives Michelle Parfitt and Leigh O’Dell provided updates on the Committee’s progress as the TCC prepares for the Motion to Dismiss Hearing on June 27, 2023. TCC member Randy Derouen also shared his cancer journey and experience being on the Committee.
Speaker 1 (00:00):
Good afternoon and good morning everyone. Um, on behalf of the official Committee of Talc claimants in the L T L bankruptcy, um, we call ourselves the T C C. Welcome to our third town hall. As always, thank you to everyone who’s joining us today. Um, we’re thrilled to see hundreds of you here with us, and we are so grateful that you’re choosing to spend the next few minutes with us. Today’s town hall is scheduled to last about 45 minutes. Our goal for this session is to share critical updates following last week’s court hearing and to app prize all everyone of what’s coming up in the next couple months. On the agenda for today, we’re gonna introduce Randy Darion, who is one of our 11 committee members. Then we’ll go over updates coming out of the June 13th hearing before Judge Kaplan. Before we dive into some of your most frequently asked questions, if you have any questions as the town hall goes on, we really encourage you to submit these by email to the following [email protected].
Speaker 1 (01:23):
That’s ltl. That’s questions at LTL T A l c C O M M i t t e.org, or use the Zoom QA question, answer feature. We also encourage you to check out our webpage, which we are regularly updating, and the webpage address is L t l talc committee.org. That’s L T L T A L c committee, c o m m i t t e e.org. The speakers, uh, at today’s town hall are myself, David Moulton from Brown Redneck. I’m one of the co-counsel representing the T C C, along with among others, Melanie Ganowski from the Otter Firm, T c c member representatives. Uh, Lisa Nathanson Bush from the law firm of Whites Luxembourg, Leo Dell from the law firm of Beasley Allen, and Michelle Parit from the law firm of Ashcroft and Jarrell are gonna serve, uh, today, uh, as well as on the committee as our co-chairs.
Speaker 1 (02:32):
Uh, today you will be hearing from Lee and Michelle, who are also co-lead counsel in the multi-district, uh, litigation, uh, cited in New Jersey. For those who may not know, the talc claimants committee is comprised of 11 members. Of those members. 10 are either suffering from ovarian cancer or mesothelioma, or they have family members who suffered from and died from these, the, these diseases. In addition to Randy, the other members of the committee are Brandy Carl, Patricia Cook, Kristy Doyle as the estate representative of Dan Doyle, April Fair, William Henry as the estate representative of Deborah Henry. Alicia Landrum, Rebecca Love Sue Summer Crest, Tanya Wetzel as the estate representative of Brandon Wetzel and Blue Cross Blue Shield of Massachusetts. The TT c C was appointed by the office of the United States trustee, which is a division of the Department of Justice. The committee is the official committee specially appointed under the bankruptcy code and is the fiduciary, which represents all top claimants under the bankruptcy code.
Speaker 1 (03:54):
The committee has a duty to communicate with all the creditors and claimants in the LTL management bankruptcy case. Lastly, before I introduce you and pass you on to our member, Randy, let me remind you that we are not your lawyers and are not here to give you legal advice. We understand that many of you have counsel, and for those who identified their counsel when you signed up for this town hall, we reached out to invite your counsel also to attend for further, this is not a solicitation for or against the debtor’s proposed plan. This town hall is being recorded and will be posted on our committee’s webpage. Now, before we dive into the latest updates in the case, I am gonna pass the digital baton to and open the floor for Randy. Thank you all.
Speaker 2 (04:49):
Good morning, and thank you for joining us on this beautiful day. I wanna take this time to introduce myself. My name is Randy Darwin and I reside in Biloxi, Mississippi. I’m 49 years old and just two weeks from my 50th birthday, which I thought I’d never see. When I was diagnosed with cancer, I was diagnosed with peritoneal mesothelioma three years ago This month, I went through major ascites buildup and had 23 paracentesis procedures with over 170 liters strain from my abdomen. That was all within a 10 month period. I wasn’t a surgical candidate when I was diagnosed of June of 2020, but I did have the hip procedure with a high chemotherapy through a laparoscope. I spent six months on chemotherapy treatments, 11 months on two more chemo treatments and seven months of immunotherapy during chemo. Around October, 2021, I become anemic with drastic changes to my hemoglobin, potassium and magnesium levels.
Speaker 2 (06:09):
After six blood transfusions in multiple hospital stays locally and at MD Anderson in Houston, Texas, I was so weak that I was able, I was barely able to walk on my own through the mo. Next month or so, I fell down and I fell down over and over and over again, but I got back up each and every time. In December, 2021, I woke up unable to walk, and I’ve never walked on my own since. Those who know me know I don’t give up easy and I have all the faith in the world that I will walk again in. I wake up each morning and the first thing I say to myself, will today be that day? That day hasn’t come yet, but I know it will soon. I’ve lost so much in so little time as we all have, but I will never lose my purpose as a baby. My grandmother and my mother used Johnson and Johnson’s baby powder on me multiple times daily, including diaper changes and after bathing. As I grew older and living in warmer weather down south, I continued to choose Johnson Johnson products to freshen myself up, whether it was playing sports, marching in the band, or just going out on the town where humidity rules the roost. I used it religiously until I was diagnosed with mesothelioma.
Speaker 2 (07:52):
I have served on the talc committee, number one since the first case was filed in October of 2021 and continue to serve on the talc committee too. I’m blessed to represent all talc victims, including those with mesothelium and ovarian cancer. I’m honored to represent the mothers and fathers who have lost a child or who have to raise their grandchildren. I’m honored to represent all the husbands and wives who’ve lost their significant others. How many of us have lost a parent or a child, or a spouse, or a sibling, or just a friend because of these horrible diseases?
Speaker 2 (08:40):
I have one goal, and it’s to make sure each and every one of you get justice. Many of our warriors have passed away during the first bankruptcy waiting for their day in court. So many of us has lost their jobs and can’t work no more. So many of us have lost our insurance and can’t afford the proper care that we deserve. No one here today has asked for this, and most of us will never have a normal life again. I live on a beach, you know, I can see the sunrise and I can watch the sunset, but I may never get to feel my feet walking in the sand or the splash of the water coming from the Gulf. Corporations must be held accountable and shouldn’t be allowed to hide behind fraudulent bankruptcies. Justice will be served one day for all of the pain and suffering that Johnson and Johnson has caused. The thousands and thousands of families who have put their trust in these tainted products that have harmed people like you and me. We have a great team of dedicated lawyers and retired bankruptcy judges among others, working hard and I mean hard around the clock to make sure we can have our day in court and get this out of bankruptcy.
Speaker 2 (10:09):
I am no lawyer, but where I stand, I think the bankruptcy process completely disregards my pain and my suffering. I’ve lost so much to this cancer, my career, the ability to walk, and I don’t even know about my future in MDL and in civil court. I would have a chance to be directly heard by a jury, a judge Ann Johnson and Johnson, and I will say this, since October of 2021, not once has Johnny Johnson and Johnson nor their attorneys requested to speak to members of this committee. I’m frustrated that the victims don’t get to be heard and won’t get our fair day in court. Once again, thank you for your time and I’ll leave you with a, a quote I stumbled up on recently. Don’t ever quit. As weak as you may be, and as tired as you may feel, you do make a difference, there’s something to lose if you don’t continue to fight. I’ll repeat. You do make a difference, and you can make a difference. Stay strong and always continue to believe. Thank you, David. I’ll turn it back over to you.
Speaker 1 (11:33):
Thank you, Randy. Folks, I’m gonna take a few minutes to share with you some of the latest updates in the case coming out of, uh, last week’s hearing and looking ahead, uh, on June 13th, uh, judge Kaplan granted an extension on the preliminary injunction through August 22nd. That injunction prohibits the commencement or continuation of any trial against j and j and other protected non debtors until that date. While the committee, the T C C is seeking to have the preliminary injunction lifted in entirely so that cases against Johnson and Johnson could continue in those courts, the court ruled that the terms of the preliminary injunction would remain the same through the extension. What this means is that new lawsuits can be filed in state courts against the protected parties listed in the preliminary injunction. Order and discovery can continue in state court cases. Uh, there’s an issue in front of the judge now whether or not, um, that should apply also to the M D L case, which up until today, um, um, discovery and commencement of cases, um, was, uh, not, uh, specifically allowed with respect to ongoing discovery and trial status.
Speaker 1 (12:56):
The information is posted on the website. As many of you know, we are preparing for a trial on the motion to dismiss this second Johnson Johnson slash LTL bankruptcy case. We call it LTL part two or LTL two. Um, and it’s not only us, but there are eight other motions to dismiss. Um, and I’ll get to that in a minute, um, possibly nine, but I believe it’s eight. Um, on April 24th, 2023, the T C C filed a motion to dismiss the Chapter 11 case. One of our primary arguments is that L t l the debtor is not in financial distress, and the new bankruptcy case was therefore not filed in good faith. As I mentioned, there are several other groups, including the Office of the United States trustee, which is a division of the Department of Justice, numerous states, attorneys general, and other plaintiff groups who also want this bankruptcy case dismiss and have also filed motions to dismiss.
Speaker 1 (14:03):
The trial on the motion to dismiss will take place on June 27th through the 30th of June at the bankruptcy court in Trent, New Jersey. That’s next Tuesday at 9:00 AM starting and ending a week from Friday. The public will be able to dial into the hearing and listen to all the testimony, arguments, examination, and cross-examination via a number that will be posted on the TCCs website. At the recent hearing on June 13th, we learned that Judge Kaplan intends to render a decision on the motions to dismiss on or before August 2nd. Our committee, the TCC, strongly maintains that this case, like part one, the LTL case before it should be dismissed. We will continue to strongly advocate that position on behalf of all talc creditors. For more information about the motion to dismiss, please visit the TCCs website, and I’ll say it again, LTL talc committee.org, L t l T A L c C O M M I T t e e.org to read through our FAQs or watch our first town hall. Now, I’d like to hand, um, the digital, um, podium back to Randy and our committee representatives to discuss some of the questions, um, that you have around these issues. Randy,
Speaker 2 (15:39):
Thank you, David. I know the committee has, has been keeping, uh, really close eye on all your questions. Um, the one on everyone’s mind, which I’m, uh, ask Michelle, uh, what happens if the case does not get dismissed?
Speaker 3 (15:57):
Well, Randy, first, um, it was just, uh, wonderful to hear you speak and address, uh, so many people out there and I know I speak for everyone when we wish you and all of the other claimants well, um, just, just wonderful and you did a beautiful job. Great question. What happens if the, uh, case does not get dismissed? Well, Randy, let me first say this to you. We are working collectively as a group, as hard as anyone possibly can to defeat, uh, this bankruptcy. The tout claimant’s committee believes this case was filed in bad faith. We maintain that L t l management is not and never was in financial distress, and we believe it’s important that all creditors and all claimants have an opportunity to return to the justice system, a system that provides a trial by jury that allows you to choose a system of justice that our, that our Congress has provided us.
Speaker 3 (16:59):
Preparation for the motion to dismiss is ongoing. Our attorneys and, uh, individuals have been working very, very hard to read us for this process, which begins, as David mentioned on June 27th. It’s intense and they’re hardworking. They’re gonna be many, many witnesses at the trial. Not only liability corporate witnesses, uh, but as important several legal and financial experts, um, from both sides. So we’re excited, uh, frankly, of going forward. We feel that justice is on our side, um, that this bankruptcy should have never been filed. We beat it once and we will beat it again. So thank you, Randy. Great question.
Speaker 2 (17:39):
Leah. This next question is for you, the debtor’s proposed plan. What do we actually know about it?
Speaker 4 (17:46):
Well, thanks Randy. Thanks for your, your question and thanks for sharing earlier. Uh, I know I speak for Michelle and all of us. It’s such a privilege to have the opportunity to advocate for you and so many other, uh, deserving men and women and, uh, it’s absolutely an honor. And so thank you for, for sharing with us. Let me try to just outline what we can say and what we can’t say about the plan. The court has not yet approved the distribution or the dissemination of the debtor’s proposed plan a reorganization. There’s a hearing to discuss a proposed disclosure statement and the accompanying plan on August the 22nd until the court approves the distribution of the disclosure statement. No one including LTL as the debtor or the tort claimant committee can solicit support in favor of the plan or a against the debtor’s proposed plan.
Speaker 4 (18:46):
And we understand that the plan as previously filed, is likely to be amended. The debtor’s proposed plan, uh, has a cap of no more than $8.9 billion that would be distributed among all creditors, and that includes all current ovarian cancer and mesothelioma victims as well as gynecologic cancer victims. Uh, attorneys general for 42 states, large insurers and an unknown number of future claimants or future victims, whether they have mesothelioma, ovarian cancer, or another type of cancer. And those future victims would be over 25 years. The debtor’s proposed plan offers a point system rather than dollars to determine the amount of compensation a claimant would be entitled to. And these, these points are based on the amount of exposure. If it’s less than 40 years or more than 40 years, the cancer type, how often or regular was the use of Johnson’s baby powder or shower to shower?
Speaker 4 (19:59):
But it doesn’t, the plan doesn’t clearly outline how the allotted points would translate into dollars or even cents for victims. Each point could range from less than 50 cents a point or up to $2 a point. And so to try to illustrate this, let me walk through a couple of examples for an ovarian cancer, uh, victim. The point system begins by looking at the age and the diagnosis of, uh, the woman. For example, if a woman were 62 years old at diagnosis and she had sero ovarian cancer, that’s a particular subtype of ovarian cancer and she had no risk factors, medical risk factors that will make her predisposed to ovarian cancer and she passed away, unfortunately from the disease, she would be awarded 140 points. That’s not dollars. That’s points. And there are other factors that go into the calculation to determine the final point allotment, and that include includes the length of time.
Speaker 4 (21:14):
As I mentioned, if a woman used less than 40 years, the amount of points would be reduced. If she had medical risk factors like a genetic mutation, the points would be reduced. If she did not use the product daily, the points would be reduced. In our example, if the claimant used j and j baby powder for 20 years on a weekly basis and had no other risk factors, including a genetic or other, excuse me, or generic or other calc exposure, her points would be reduced by 50%. That would mean take it all into consideration. She would end up having total points of 31,500 points, not dollars. If each point is valued at 50 cents a point, the total amount that she would receive is $15,750. This would be for in our example, just again to remind you, a woman who’s 62 years old and dies of ovarian cancer, if the points are valued at $2 each, the total value or total amount of compensation gross amount would be $63,000.
Speaker 4 (22:32):
In addition to providing an ovarian cancer example, let, let me walk through a mesothelioma victim example. Comparatively, the point system evaluates the diagnosis and how regularly the victim uses Johnson’s talcum powder products. A 47 year old, um, victim of mesothelioma with plural mesothelioma, it means it’s in the lungs would be awarded 450 points. Again, that’s points not dollars. If the claimant used j and J’S powder for 20 years, the points would be, would be reduced by 50% to 225,000 points. If that use was less than regular, meaning weekly rather than daily, the points award would be cut in half again to 112,500 points. If each point is valued at 50 cents, the total amount he or she would receive is $56,250. If the points are valued at $2 each, the total amount of compensation for that victim would be $225,000.
Speaker 2 (23:48):
Thank you for explaining that Leah. Michelle, on the last question, what kind of person like me expect from this plan?
Speaker 3 (23:56):
Randy, you are coming up with good questions all the way around. Um, this proposed plan, and again, I’m going to reiterate. Proposed plan states that no funds will be paid until there is a final non appealable order, a final non appealable order. And what that means is that all appeals must be exhausted before any final agreement can possibly be reached. Now, that may take several months or that could actually take many years before we can even begin to meet that condition. Currently only l t l the debtor has the right to propose a plan, the type of plan they’ve just proposed. The T C C our TLC claim is committee. We’ve actually filed a motion to ask the court to let us file our own plan on behalf of all of the creditors, a plan that would provide a fair and equitable, uh, compensation for all of the harms and the suffering and the misery.
Speaker 3 (24:54):
All of you have have endured your families, but we, while we can file it, the court gets to make a decision as to whether or not he will accept it. The motion has been adjourned, which means it won’t be heard before Judge Kaplan until August 22nd. Again, that’s August 22nd until the court actually authorizes our t claimant’s committee that they can file their plan. We have to sit back and we are not in a position to offer an alternative. So that’s where we find ourselves right now with an existing proposed plan by l t l, with the opportunity hopefully very soon to propose our own plan. And that would be in the event that we are not successful with our motion to dismiss. But you remember this Randy, our eye is on that motion to dismiss and our ability to dismiss this bankruptcy and get you all the rights that you so much deserve. Thank you, Randy. I appreciate the question.
Speaker 2 (25:56):
Thank you guys for the questions and answers.
Speaker 1 (25:59):
Thank you everyone for those updates and a big, big thank you for Randy for sharing his time and story with us. Just, just two points regarding what you heard last. Um, Michelle Parit mentioned, uh, an 8.9 billion number from the debtor’s plan. That’s a present value number and there’s a 25 year payout. Um, with respect to the actual amount, um, of course we thank everybody who joined today’s town hall. As always, we deeply appreciate the time you’ve taken to tune in. Um, as we look ahead to the coming days and weeks, there are near term milestones we’re approaching quickly. Um, you heard on June 27th the motion to dismiss trial will begin. As we mentioned, the trial will take place at the bankruptcy court in Trenton, New Jersey. The public will be able to dial in to the hearing by telephone via the number that will be posted on the T C C website by August 2nd.
Speaker 1 (27:03):
According to, uh, what we’ve heard to date from Judge Kaplan, we will have a motion, a decision on the motion to dismiss if the case is not dismissed by Judge Kaplan. We will then have a hearing on that date, um, regarding, uh, a whole host of things including, um, coming up a hearing on whether the T C C can offer and solicit a plan on its own. Um, on August 22nd, the judge will be also evaluating the status of the preliminary injunction following the extension granted on June 13th. We will continue to keep the committee website frequently updated and we will be sure to flag upcoming town hall dates and events as we watch them. Please watch for a town hall, which we will schedule soon after the motion to dismiss trial concludes, and I mentioned that that motion will be concluding on June 30th. If you have any, if you have any questions about the case between now and then, please don’t hesitate to contact your own lawyer or submit questions to the ME email on our website.
Speaker 1 (28:16):
We will endeavor to promptly respond to all questions. Again, our website is www ltl talc committee.org. That’s l t l t a l c c o m m i t t e e.org. Also, you can submit any questions you may have to the following email address [email protected]. That’s questions at ltl t a l c c o m m i t t e e.org. We really appreciate you all, hundreds of you, um, joining us today. Thank you, and we look forward to reporting more on the progress of this case and the progress, more specifically of the upcoming motion to dismiss the bankruptcy case as a bad faith filing. Thank you everybody.