Johnson & Johnson offers $5.5b to settle most US talcum powder-related cancer claims
The proposed settlement would cover about 69,000 cases, representing most of the remaining talc-related claims against the healthcare company.
Johnson & Johnson has proposed a $5.5 billion settlement to resolve tens of thousands of lawsuits in the United States alleging that its talc-based products, including its baby powder, caused ovarian cancer because of potential asbestos contamination.
The proposed settlement would cover about 69,000 cases, representing most of the remaining talc-related claims against the healthcare company. Under the proposal, Johnson & Johnson would pay up to $3 billion next year, with no further payments due until 2028. The agreement requires approval from legal firms representing 95% of ovarian cancer claimants in state and federal courts before it can be finalized.
The lawsuits allege that asbestos-contaminated talc in the company's products caused ovarian cancer. Johnson & Johnson has denied the allegations and said its talc products are safe.
Keep updated, follow The Business Standard's Google news channel
Erik Haas, the company's vice president of litigation, described the claims as "meritless" and said Johnson & Johnson would have "ultimately prevailed with further litigation." He said the proposed resolution "allows the company to put this matter behind it" and "remain focused on its mission to develop medicines and devices that save lives."
Johnson & Johnson said, "Studies show talc is safe, does not contain asbestos and does not cause cancer."
The litigation dates back to at least 2009 and has become one of the company's longest-running legal disputes.
In recent years, Johnson & Johnson has changed its baby powder business. The company stopped selling talc-based baby powder in the United States several years ago and completed a global transition to cornstarch-based baby powder in 2022.
The company said, "As part of a worldwide portfolio assessment, we have made the commercial decision to transition to an all cornstarch-based baby powder portfolio."
Johnson & Johnson's former consumer health business, Kenvue, which was spun off in 2022, retains liability for baby powder products sold outside North America.
