Johnson & Johnson offers $5.5 billion to resolve baby powder cancer claims

Johnson & Johnson offers $5.5 billion to resolve baby powder cancer claims

Johnson & Johnson Proposes Settlement for Talcum Powder Lawsuits

Johnson & Johnson has put forth a $5.5 billion offer to resolve ongoing lawsuits concerning its talcum powder products, which claim to have caused ovarian cancer. This settlement is contingent upon approval from at least 95% of the remaining claimants.

The company has faced over 90,000 lawsuits—both federal and state—related to these talc-based products in the last decade. Talc can sometimes be found with traces of asbestos, a hazardous material linked to various health issues, including ovarian cancer.

Last year, a U.S. Bankruptcy Court judge turned down a $9 billion settlement proposed by Red River Talc, a Johnson & Johnson subsidiary. This rejection would have marked one of the largest settlements in tort history. Interestingly, the company chose not to appeal this decision and opted to continue its legal battle.

Eric Haas, the company’s global vice president of litigation, noted a recent court ruling requiring plaintiffs to demonstrate a “specific causal relationship” between the talc and ovarian cancer claims.

“The court’s order placed plaintiffs in the intolerable position of having to present specific causation evidence to sustain claims that do not exist.”

According to the newly proposed settlement, Johnson & Johnson would disburse up to $3 billion in 2027, with no additional payments scheduled until 2028. The company mentioned it has already addressed nearly 95% of its cancer-related cases and resolved all state consumer protection claims and disputes with suppliers.

“As with most lawsuits attempted to date, we are confident that we will ultimately prevail in further litigation, but this resolution allows us to set aside this matter and continue to focus on our mission of developing life-saving medicines and devices.”

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