$700 Million Settlement Against Johnson and Johnson – What’s Your Cut?

$700 Million Settlement Against Johnson and Johnson – What’s Your Cut?

Attorney General Nessel Reaches $700 Million Settlement Against Johnson and Johnson

Your mom and your dad have been covering you with Johnson and Johnson powder since you were a baby. There was always a cloud of powder in the air as they slapped it on you.

It got all over your face and hands and you both carried it throughout the house.  You could taste it because it got in your mouth from breathing it in.  You’ve been using it all your life, you still have some in your closet. You still use it today.

What’s your cut of the $700 Million and why didn’t they ban it from use long ago? 

Attorney Michael Komorn

Attorney Michael Komorn

State / Federal Legal Defense

With extensive experience in criminal legal defense since 1993 from pre-arrest, District, Circuit, Appeals, Supreme and the Federal court systems.

KOMORN LAW (248) 357-2550

Here is the news release from the government.

Attorney General Nessel Reaches $700 Million Settlement Against Johnson and Johnson

June 11, 2024

LANSING – Michigan Attorney General Dana Nessel and 42 other attorneys general reached a $700 million nationwide settlement to resolve allegations related to the marketing of Johnson & Johnson’s baby powder and body powder products that contained talc.

The consent judgment (PDF) filed in this lawsuit addresses allegations that Johnson & Johnson deceptively promoted and misled consumers in advertisements related to the safety and purity of some of its talc powder products. As part of the lawsuit, Johnson & Johnson has agreed to stop the manufacture and sale of its baby powder and body powder products that contain talc in the United States.

“Product safety should be a top priority for every company in every sector, but especially an historic, trusted brand selling baby care products,” said Nessel. “Misleading Michigan consumers will not be tolerated, no matter how large or well-known the corporate perpetrator. We will stand up for consumer safety in our state, and I’m appreciative for our many bipartisan partners on this litigation throughout the country.”

Johnson & Johnson sold such products for more than 100 years. After the coalition of states began investigating, the company stopped distributing and selling these products in the United States and more recently ended global sales. While this lawsuit targeted the deceptive marketing of these products, numerous other lawsuits filed by private plaintiffs in class actions raised allegations that talc causes serious health issues including mesothelioma and ovarian cancer.

Under the consent judgment, Johnson & Johnson:

  • Has ceased and not resumed the manufacturing, marketing, promotion, sale, and distribution of all baby and body powder products and cosmetic powder products that contain talcum powder, including, but not limited to, Johnson’s Baby Powder and Johnson & Johnson’s Shower to Shower (“Covered Products”) in the United States.
  • Shall permanently stop the manufacture of any Covered Products in the United States either directly, or indirectly through any third party.
  • Shall permanently stop the marketing and promotion of any Covered Products in the United States either directly, or indirectly through any third party.
  • Shall permanently stop the sale or distribution of any Covered Products in the United States either directly, or indirectly through any third party.

As part of the settlement, Michigan will receive $20,615,040.58. This settlement is pending judicial approval.

Michigan is joined on the multistate settlement by the attorneys general of Texas, Florida, and North Carolina, as well as Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, the District of Columbia, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin.

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Read it Consent Judgement PDF

  • Where does the money go?
  • Are you eligible for some of that government windfall?
  • How do you prove that you used the powder and the link to your disease?
  • Got a lifetime of receipts?
  • Got pictures of you using it daily?

Here are some possible answers at Forbes.com

The answer is millions of consumers will pay more for products and J&J will make it up in a year and probably another robbery just occured.

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Attorney Michael Komorn

Attorney Michael Komorn

State / Federal Legal Defense

With extensive experience in criminal legal defense since 1993 from pre-arrest, District, Circuit, Appeals, Supreme and the Federal court systems.

KOMORN LAW (248) 357-2550

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State / Federal Legal Defense

With extensive experience in criminal legal defense since 1993 from pre-arrest, District, Circuit, Appeals, Supreme and the Federal court systems.

KOMORN LAW (248) 357-2550

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The recent recommendation by Attorney General Merrick Garland to reclassify cannabis from a Schedule I to a Schedule III controlled substance marks a pivotal shift, promising significant legal and financial implications for the industry.

Decoding the Reclassification Benefits

Cannabis, currently grouped with substances like heroin under Schedule I, has faced disproportionately stringent regulations. This reclassification to Schedule III, which includes less stringently controlled substances such as ketamine and testosterone, rectifies a longstanding regulatory misalignment. It acknowledges cannabis’s lower risk compared to many Schedule II drugs that have contributed to widespread public health issues.

For cannabis businesses, the most immediate benefit of this shift is the potential alleviation from the severe limitations imposed by Internal Revenue Code Section 280E. Currently, businesses involved with Schedule I substances are denied the ability to deduct typical business expenses, drastically increasing their tax burden. The reclassification promises to normalize tax treatments, significantly reducing effective tax rates and enhancing overall business profitability.

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State / Federal Legal Defense

With extensive experience in criminal legal defense since 1993 from pre-arrest, District, Circuit, Appeals, Supreme and the Federal court systems.

KOMORN LAW (248) 357-2550

Navigating Beyond IRC 280E

While overcoming IRC 280E is a significant victory, it is just one piece of the tax puzzle for cannabis businesses. Many such businesses operate as C corporations, subjecting them to a flat 21% federal income tax rate on profits, with an additional tax on dividends paid to shareholders. This double taxation framework can lead to an effective tax rate nearing 44.8% at the federal level alone, not including potential state and local taxes.

Given the inherent tax challenges in the C corporation structure, especially regarding asset sales, Komorn Law PLLC advises a strategic reassessment of business structures. The sale of assets by a C corporation incurs federal, state, and local taxes on gains, followed by further taxation of the distributed dividends, compounding the financial burden.

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Contact Komorn Law for More Insight

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Summary from the official government website (Link Below)

The Use of Tetrahydrocannabinol Is Associated with an Increase in Survival Time in Palliative Cancer Patients: A Retrospective Multicenter Cohort Study

The study, conducted by researchers in Germany, analyzed data from the palliative treatment documentation of over 9,000 patients from five ambulatory palliative care teams. The researchers divided the patients into three groups: those who did not receive THC, those who received a low dose of THC (less than or equal to 4.7mg per day), and those who received a higher dose of THC (greater than or equal to 4.7mg per day). They then compared survival rates between the groups.

The analysis revealed that THC use was associated with a statistically significant increase in survival time, but only for patients who received a daily dose exceeding the median amount of 4.7mg. In this group, patients lived an average of 15 days longer compared to those who did not receive THC.

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Key takeaway: This study suggests that THC may offer a survival benefit for ambulatory palliative care patients, but only at higher doses. More research is needed to confirm these findings and to explore the underlying mechanisms.

Additional considerations:

  • The study was observational and cannot definitively prove that THC caused the observed increase in survival time. Other factors may have played a role.
  • The optimal dosage of THC for palliative care patients is still being investigated.
  • THC use can have side effects, and it is important to weigh the potential risks and benefits when considering it as a treatment option.

Further readings:

Source: NIH

In the FEDERAL COURT SYSTEM
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