Johnson & Johnson proposes $5.5 billion talc settlement to end marathon legal fight
Johnson & Johnson proposes a $5.5 billion settlement to resolve remaining lawsuits claiming its talc products caused ovarian cancer.Summary
Johnson & Johnson has proposed a $5.5 billion settlement to resolve ongoing litigation involving claims that its talc products caused ovarian cancer. The settlement is contingent upon at least 95% of the remaining claimants participating. This move follows a previous failed attempt last year when a bankruptcy judge denied a $9 billion settlement proposed by a company subsidiary, Red River Talc.
The proposed payment structure includes an initial payment of up to $3 billion next year, with no further payments required until 2028. Erik Haas, Johnson & Johnson's worldwide vice president of litigation, stated that while the company believes it would have ultimately prevailed in court, this resolution allows the company to focus on its core mission.
Johnson & Johnson has already settled approximately 95% of lawsuits related to mesothelioma, as well as state consumer protection claims and talc-supplier disputes. Following the announcement, shares of the New Brunswick, New Jersey-based company rose more than 2% before the market opened on Tuesday.
(Source：Google News)