Yahoo Finance Johnson and Johnson Offers to Pay $6.5 Billion to Settle Talcum Powder Cancer Lawsuits
Johnson and Johnson reiterated in its statement on Wednesday, May 1, that “none of the talc-related claims against it have merit”
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Stock image of baby powderJohnson & Johnson has offered to pay $6.475 billion in response to thousands of lawsuits that have alleged the brand’s baby powder and talc products contained asbestos, which allegedly caused ovarian cancer.
The company announced this settlement in a statement on Wednesday, May 1, noting its intent to pay over the next 25 years.
This would "resolve 99.75% of all pending talc lawsuits" related to ovarian cancer claims against the company. Additionally, this would also settle current and future ovarian cancer claims.
J&J stated that the attorneys “representing the overwhelming majority of current ovarian claimants” support the current proposal.
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Stock image of baby powderThe deal is still dependent on the lawsuits’ petitioners' approval. There will be a three-month voting period, and for the deal to be approved, 75% of the group must vote in support. If the 75% threshold is reached, future lawsuits would be prevented, and consumers would not be allowed to pursue separately.
Related: Johnson & Johnson to Pay $8.9B Settlement over Talcum Powder Cancer Claims
J&J would then attempt to resolve the lawsuits through a third bankruptcy filing of a subsidiary company, LTL Management, per CNN. However, courts have not approved the company’s first two efforts to resolve the lawsuits this way. Petitioners did not have the opportunity to vote in LTL Management’s previous bankruptcy cases.
LTL Management was created to take on the company’s talc liabilities, reports CNBC. A U.S. Appeals Court rejected the first bankruptcy filing LTL proposed in January 2023, per Reuters. The second bankruptcy filing — in which LTL agreed to pay an $8.9 billion settlement to address mesothelioma cancer lawsuits — was rejected months later in July 2023.
Both requests were denied because the claims that J&J was in financial distress were invalid, per The New York Times.
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The company announced that it still intends to defend itself amid the ongoing lawsuits, while simultaneously working to garner approval and support for the proposed settlement.
J&J stated that “it has prevailed in 95% of ovarian cases tried to date, including every ovarian case tried over the last six years.”
However, in 2021, J&J was ordered to provide a $2.12 billion award to 22 women who claimed their ovarian cancer was caused by asbestos in J&J talc products.
Additionally, in the first quarter of 2024, J&J recorded a charge of $2.7 billion, which accounted for recent talc-related settlements, per CNN.
J&J also shared in the statement that “none of the talc-related claims against it have merit.”
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