Johnson & Johnson to Pay $5.5bn Settlement over Baby Powder Lawsuits – THISDAYLIVE
Johnson & Johnson has proposed a $5.5 billion settlement to resolve tens of thousands of lawsuits alleging its talc products caused ovarian cancer.Summary
Johnson & Johnson has announced a provisional settlement of approximately $5.5 billion to resolve roughly 76,000 lawsuits alleging that its talc-based products, such as baby powder, caused ovarian cancer. The agreement aims to resolve nearly all outstanding talc-related allegations, including those in federal and state courts. For the deal to be finalized, it requires acceptance from 95 percent of the ovarian cancer claimants.
While J&J maintains that the claims are "meritless" and asserts that its talc products are safe and asbestos-free, the company stated it is seeking the settlement to achieve "closure." The payment structure includes $3 billion expected in 2027, with further payments in 2028. Some legal representatives suggest the total payout could exceed $7 billion depending on participant numbers. Unlike previous bankruptcy-related settlement attempts, this agreement applies only to existing claims and does not cover future lawsuits.
This development follows years of complex litigation, including unsuccessful attempts by J&J to use a bankruptcy strategy known as the "Texas two step." The company transitioned from talc-based baby powder to cornstarch-based products in the U.S. in 2020.
(Source：Thisdaylive)