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J&J puts forward $6.5 billion settlement for talc cancer lawsuits

  • By Al Mayadeen English
  • Source: Agencies
  • 1 May 2024 16:58
  • 1 Shares
2 Min Read

The proposed agreement aims to resolve the lawsuits through a third-party bankruptcy filing by one of Johnson & Johnson's subsidiary companies.

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  • Johnson & Johnson
    A sign for Johnson & Johnson Consumer Health is displayed in Flourtown, Pa., on April 28, 2023. (Matt Rourke/AP)

Johnson & Johnson is advancing with a proposed settlement totaling $6.475 billion for a multitude of lawsuits alleging that its baby powder and other talc-based products contain asbestos, thus contributing to ovarian cancer, Reuters reported Wednesday.

The proposed agreement aims to resolve the lawsuits by means of a third-party bankruptcy filing by one of Johnson & Johnson's subsidiary companies. A three-month voting period will commence, seeking consensus for a settlement encompassing all existing and prospective claims related to ovarian cancer.

Notably, ovarian cancer claims represent 99% of the talc-related lawsuits against J&J, with approximately 54,000 lawsuits consolidated in a federal court in New Jersey.

J&J has already faced rejection from courts regarding settlement through bankruptcy proceedings of its subsidiary, LTL Management, designed to assume the company's talc liabilities.

Maintaining its claim that its products are asbestos-free and do not cause cancer, J&J asserted that the majority of attorneys representing plaintiffs in cancer-related lawsuits support the proposed settlement.

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It also expressed confidence in achieving the 75% support threshold necessary for a bankruptcy settlement, effectively terminating legal proceedings and averting individuals from pursuing separate lawsuits.

The proposed settlement builds upon J&J's previous agreements, including settlements with approximately 95% of individuals who sued the company for mesothelioma, a rare cancer linked to asbestos exposure.

While the value of mesothelioma settlements was not disclosed, J&J reported a $2.7 billion incremental charge in the first quarter of 2024 to account for recent talc-related settlements.

J&J reiterated its commitment to defending against lawsuits while concurrently attempting to garner votes on the settlement. It also highlighted its success rate in ovarian cases over the past six years, prevailing in 95% of trials.

But significant verdicts have been awarded to plaintiffs, including a $2.12 billion award favoring 22 women who attributed their ovarian cancer to asbestos in J&J talc. Notably, in the past month, J&J was ordered to pay $45 million in a mesothelioma case.

Read more: Johnson & Johnson toxic children’s cough syrup recalled in Kenya

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