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Beasley Allen Law Firm: Attorneys for Women Harmed by Johnson & Johnson’s Talcum Powder Resist Company’s Attempt to Stuff Ballot Box in Unprecedented Third Attempted Bankruptcy

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수요일, 5월 1, 2024

Legal, Professional Services, J&J, Asbestos, Mesothelioma, Cancer, Woman, Bankruptcy, Bankruptcy Code, MDL, Ashcraft, Medicine, Action Replay, Talc, Lawyer, Ovarian cancer, Insurance

Now the company promises minimal payments for these “worthless” claims in exchange for a “yes” vote.

Key Points:

Now the company promises minimal payments for these “worthless” claims in exchange for a “yes” vote.
Medical costs for treating ovarian cancer can total more than $1.5 million per patient, with an average near $220,000.
In October 2021, at the time of the first J&J/LTL bankruptcy, there were approximately 35,000 lawsuits alleging talc-caused ovarian cancer or mesothelioma.
“This will be the third bankruptcy in three years,” noted trial lawyer Richard Golomb , of Golomb Legal P.C.

The impact of regulatory changes on rating behaviour

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화요일, 4월 2, 2024

Długosz, Disagreement, Pi bond, Direct lending, Key, Research Papers in Economics, Finance Secretary (India), University of Oxford, STS, Journal of Economic Perspectives, International, American Economic Review, Life, Columbia Business School, British Academy of Management, Risk assessment, ABS, Rating, EBA, Development, Reputational damage, OBS, CRA, Bond credit rating, Cras, Journal of Monetary Economics, CDO, Becker, Paper, 2007–2008 financial crisis, Raja, University, Environment, Journal of Financial Economics, Perception, H3, Website, Securitization, Working paper, Market, Collection, Total, European Banking Authority, Quarterly Journal of Economics, BBB, Whetten, Column, ESMA, European Journal, Issuer, Asset quality, Information revolution, Federal Reserve Bank, OLS, Statistics, PDF, Private, ECB, Surety, Weighted-average life, CCC, European Commission, Social science, Journal of Financial Stability, JEL, Real, Bias, Journal, Research, Classification, Certification, Commission, Credit, The Journal of Finance, Literature, Karel Škréta, European Central Bank, AA, Finance Research Letters, Origination (telephony), Monetary economics, Section 5, Xia, Kraft Foods, Government, AAA, Mukherjee, Finance, Deku, DOI, White, Risk, IOSCO, MBS, OECD, Wang, Section 4, University Challenge 2013–14, Section 3, Ashcraft, Financial management, Accounting, Financial economics, Fannie Mae, Conference, Pressure, Central bank, Griffin, University of Michigan, Systematic review, EPRS, Freddie Mac, Loan, BCBS, Palgrave Macmillan, R2, Microeconomics, Quarterly Journal, Financial statement analysis, The Japanese Economic Review, Christian Social Union (UK), Green, University of Huddersfield, PSM, Management, Security (finance), Security, Civil service commission, Private placement, American Economic Journal, GFC, Reproduction, IMF, Small business, Trustee, Data

Abstract

Key Points:

Abstract
We examine rating behaviour after the introduction of new regulations regarding Credit Rating
Agencies (CRAs) in the European securitisation market.
There is empirical evidence of rating catering in the securitisation market in the pre-GFC period (He et al.,
2012; Efing and Hau, 2015).
Competition among
CRAs could diminish ratings quality (Golan, Parlour, and Rajan, 2011) and promotes rating shopping by
issuers resulting in rating inflation (Bolton et al., 2012).
This paper investigates the impact of the post-GFC regulatory changes in the European
securitisation market.
In 2011, in addition to the creation of
European Securities and Markets Authority (ESMA), a regulatory and supervisory body for CRAs was
introduced.
We examine how rating behaviours have changed in the European securitisation market after the
introduction of these new regulations.
We utilise the existence of multiple ratings and rating agreements between
CRAs to identify the existence of rating shopping and rating catering, respectively (Griffin et al., 2013; He
et al., 2012; 2016).
We find that the regulatory changes have been effective in tackling conflicts of interest between issuers
and CRAs in the structured finance market.
Rating catering, which is a direct consequence of issuer and
CRA collusion, seems to have disappeared after the introduction of these regulations.
There is empirical evidence of rating catering in the securitisation market in
the pre-GFC period (He et al., 2012; Efing and Hau, 2015).
Competition among CRAs could diminish ratings quality (Golan, Parlour,
and Rajan, 2011) and promotes rating shopping by issuers resulting in rating inflation (Bolton et
al., 2012).
This paper investigates the impact of the post-GFC regulatory changes in the European
securitisation market.
In 2011, in addition
to the creation of European Securities and Markets Authority (ESMA), a regulatory and
supervisory body for CRAs was introduced.
We find that the regulatory changes have been effective in tackling conflicts of interest
between issuers and CRAs in the structured finance market.
Rating catering, which is a direct
consequence of issuer and CRA collusion, seems to have disappeared after the introduction of
these regulations.
Investors who previously demanded higher spreads for rating agreements for a
multiple rated tranche, did not consider the effect of rating harmony as a risk in the post-GFC
period.
Regarding rating shopping, we find that the effectiveness of the changes has been limited,
potentially for two reasons.
Additionally, we also find that rating over-reliance might still be an issue, especially
Rating catering is a broad term and it can involve rating shopping.
They re-examine the rating shopping and rating
catering phenomena in the US market by looking at the post-crisis period between 2009 and 2013.
Using 622 CDO tranches, they also observe the existence of rating shopping and the diminishing
of the rating catering.
Firstly, our main focus is the EU?s CRA Regulation and its effectiveness in reducing
rating inflation and rating over-reliance.
To the best of our knowledge, this paper is the first to
examine the effectiveness of the EU?s CRA regulatory changes on the investors? perception of
rating inflation in the European ABS market.
Hence, the coverage and quality of our dataset constitutes significant addition
to the literature and allows us to test the rating shopping and rating catering more authoritatively.
The following section reviews the literature
on securitisation concerning CRAs and conflicts of interest, and outlines the regulatory changes
introduced in the post-GFC period.
Firstly, ratings became ever more important as the Securities and
Exchange Commission (SEC) 5 began heavily relying on CRA assessments for regulatory purposes
(i.e.
the investment mandates that highlight rating agencies as the main benchmark for investment
eligibility) (SEC, 2008; Kisgen and Strahan, 2010; Bolton et al., 2012).
issuers) as one of the main explanations for the rating inflation (He et al., 2011; 2012; Bolton
et al., 2012; Efing and Hau, 2015).
Bolton et al., (2012) demonstrate that competition
promotes rating shopping by issuers, leading to rating inflation.
The last phase, CRA III, was implemented in mid-2013 and involves an additional
set of measures on reducing transparency and rating over-reliance.
As mentioned above, rating inflation can be caused by rating shopping
In order to be eligible to use the STS classification, main parties (i.e.
The higher the difference in the number of ratings for a
given ABS tranche, the greater the risk of rating shopping.
Alternatively, the impact of the new
regulations could be limited when it comes to reducing rating shopping.
This is because, firstly,
the conflict of interest between securitisation parties is not necessarily the sole cause for the
occurrence of rating shopping.
L is a set of variables (Multiple ratings, CRA reported, Rating agreement) that
we utilise interchangeably to capture the rating shopping and rating catering behaviour.
Hence, issuers are incentivised to report the highest possible rating and
ensure each additional rating matches the desired level.
All in all, our results suggest that
the new stricter regulatory measures have been effective in tackling conflicts of interest and
reducing rating inflation caused by rating catering.
Self-selection might be a concern in analysing the impact of the
new measures and investors? response with regard to the rating inflation.
This
result is in line with the earlier findings suggesting that regulatory changes have reduced investors?
suspicion of rating inflation and increased trust of CRAs.
Conclusion
Several regulatory changes were introduced in Europe following the GFC aimed at tackling
conflicts of interest between issuers and CRAs in the ABS market.
Utilising a sample of 12,469
ABS issued between 1998 and 2018 in the European market, this paper examined whether these
changes have had any impact on rating inflations caused by rating shopping and rating catering
phenomena.
We find that the
effectiveness of the changes has been more limited on rating shopping potentially for two reasons.
Tranche Credit Rating is the rating reported for a tranche at launch.

Plaintiffs' Steering Committee in the Federal Talc Multidistrict Litigation: Leadership in Talc MDL Litigation Applauds Sen. Durbin for Remarks in CNN Report

Retrieved on:

화요일, 5월 9, 2023

That move effectively created further delays and again denied the rights of talc victims to pursue their claims through multidistrict litigation, as well as state courts.

Key Points:

That move effectively created further delays and again denied the rights of talc victims to pursue their claims through multidistrict litigation, as well as state courts.
In the second bankruptcy filing, J&J’s proposed “funding agreement” for expenses related to the litigation was drastically reduced to create a perception of financial distress lacking in the first filing.
The CNN documentary illuminated evidence that for many years Johnson & Johnson knew about the existence of asbestos in its talc but sought to conceal it.
The company has announced a global ban on sales of baby powder containing talc by the end of this year.

Beasley Allen/Ashcraft & Gerel Law Firms: Talc MDL Leadership Rejects Johnson & Johnson’s Second Attempt to Abuse Bankruptcy Process

Retrieved on:

목요일, 4월 6, 2023

This week, Johnson & Johnson announced what the company says is a resolution of tens of thousands of talc ovarian cancer and mesothelioma claims.

Key Points:

This week, Johnson & Johnson announced what the company says is a resolution of tens of thousands of talc ovarian cancer and mesothelioma claims.
There are no tactics too underhanded for the company to use to try to avoid paying reasonable compensation to these cancer victims.
The talc “settlement” being touted by J&J and the media is NOT a settlement.
It is an illusory proposal for a bankruptcy plan, yet another attempt by J&J to misuse the bankruptcy system.

Talc MDL Leadership Applauds Third Circuit Decision Dismissing J&J Bankruptcy

Retrieved on:

화요일, 1월 31, 2023

Ovarian cancer, Bankruptcy, Woman, Asbestos, J&J, Ashcraft, Courage, United States Court of Appeals for the Third Circuit, LTL, Carcinogen, Johnson's Baby, MDL, Plaintiff, Tobacco, Shower

In its ruling, the Third Circuit found that the bankruptcy of J&J's shell subsidiary, LTL, was not filed in good faith, that LTL was not in financial distress deserving bankruptcy protection, and that the bankruptcy petition should be dismissed.

Key Points:

In its ruling, the Third Circuit found that the bankruptcy of J&J's shell subsidiary, LTL, was not filed in good faith, that LTL was not in financial distress deserving bankruptcy protection, and that the bankruptcy petition should be dismissed.
"We are grateful that J&J's efforts to misuse and abuse the bankruptcy process have been rejected," said Ms. Parfitt.
Since the bankruptcy filing, hundreds of victims have died without getting their day in court.
As the Third Circuit acknowledged, its decision will remove the litigation shield of bankruptcy and allow plaintiffs to "prove to a jury of their peers" their claims.

Gomez Trial Attorneys announces the addition of Trial Attorney Sam Lynn to our San Diego office.

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월요일, 3월 21, 2022

USDA, State, LLP, Great Barrier Reef, Precocious, Criminology & Criminal Justice, Multimedia, Camping, Research, Ashcraft, Language, District, Biology, Knowledge, Columbus School of Law, History of the University of Maryland, College Park, SAN, University, Criminology

SAN DIEGO, March 21, 2022 /PRNewswire/ -- Sam is a trial attorney at Gomez Trial Attorneys and specializes in litigating catastrophic personal injury and wrongful death claims.

Key Points:

SAN DIEGO, March 21, 2022 /PRNewswire/ -- Sam is a trial attorney at Gomez Trial Attorneys and specializes in litigating catastrophic personal injury and wrongful death claims.
Prior to joining the firm, Mr. Lynn worked at several different firms in both California and Maryland.
Mr. Lynn obtained several seven-figure jury verdicts in Maryland and was recognized more than once by Metro Verdicts Monthly for his notable jury verdicts.
Since moving with his family to San Diego in 2017, Mr. Lynn has litigated dozens of cases, resulting in more than ten million dollars recovered for his clients.

Ovarian Cancer Victims Ask Court to Block Johnson & Johnson's 'Texas Two-Step' Bankruptcy Plan

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화요일, 8월 24, 2021

Historically, bankruptcy cases filed to resolve litigation, including those related to asbestos, often take years, and almost never fully repay creditors, including personal injury victims.

Key Points:

Historically, bankruptcy cases filed to resolve litigation, including those related to asbestos, often take years, and almost never fully repay creditors, including personal injury victims.
They also note that such an approach could immediately halt more than 34,000 claims by ovarian cancer victims and force all related litigation into bankruptcy court, rather than giving these victims their day in trial court before judges and juries.
"Johnson & Johnson has actively threatened attorneys for plaintiffs with this scheme to force out-of-court settlements at pennies on the dollar.
In May 2020, Johnson & Johnson announced the company would no longer make or market talc-based powders for the North American market.

Local Express Announces New VP of Small and Medium-Sized Business Sales, Michael Ashcraft

Retrieved on:

목요일, 7월 29, 2021

E-commerce

The new position will focus on helping this business segment adopt Local Express' eCommerce platform to compete against the giants of online retail.

Key Points:

The new position will focus on helping this business segment adopt Local Express' eCommerce platform to compete against the giants of online retail.
Local Express' branded service allows brick-and-mortar companies to own their entire eCommerce offering end to endfrom purchase to delivery.
Michael's experiences will optimize Local Express'offerings to suit these sized companies better," Bagrat Safaryan , founder and CEO of Local Express, said.
"Local Express has tremendous software products, solutions, and services that can be of great benefit to small and medium retailers in the Food & Beverage industry.

Four Attorneys and Partners at Ashcraft & Gerel Selected to The Best Lawyers in America for 2021

Retrieved on:

목요일, 8월 20, 2020

Legal professions, Law enforcement, Lawyer, Occupations, Ashcraft, Human activities, Work, Law

Known nationwide for an exclusive peer review methodology and a rigorous selection process, Best Lawyers relies on attorney nominations to identify candidates for this award.

Key Points:

Known nationwide for an exclusive peer review methodology and a rigorous selection process, Best Lawyers relies on attorney nominations to identify candidates for this award.
By analyzing peer feedback and performing extensive background and reference checks, the Best Lawyers team identifies which attorneys qualify for this award in their practice area and region.
Below are the areas where Best Lawyers recognized Ashcraft & Gerel attorneys in 2021:
All four of the recognized attorneys have been included for at least 15 consecutive years.
The team at Ashcraft & Gerel would like to congratulate all four of the attorneys who were selected to Best Lawyers again this year.

Ashcraft & Gerel Named to Lawdragon 500 Leading Plaintiff Consumers List for 2020

Retrieved on:

수요일, 4월 22, 2020

Ashcraft, Personal injury, Lawsuit

WASHINGTON, April 22, 2020 /PRNewswire/ --Personal injury firm Ashcraft & Gerel has been included in this year's Lawdragon 500 Leading Plaintiff Consumer Lawyers publication.

Key Points:

WASHINGTON, April 22, 2020 /PRNewswire/ --Personal injury firm Ashcraft & Gerel has been included in this year's Lawdragon 500 Leading Plaintiff Consumer Lawyers publication.
Ashcraft & Gerel has set itself apart among plaintiff consumer firms by filing high-profile lawsuits that seek to hold the most powerful to account.
This inclusion in the 2020 Lawdragon 500 recognizes its impact for consumers and thought leadership among attorneys.
Ashcraft & Gerel is honored to be included in this year's Lawdragon 500.