J&J proposes to settle talc cancer lawsuits for $6.5 billion
What's the story
Johnson & Johnson has proposed a $6.475 billion settlement to resolve numerous lawsuits, alleging that its talc-based products, including baby powder, contain asbestos and have caused ovarian cancer in users.
The settlement is planned to be managed via the bankruptcy filing of a subsidiary firm, initiating a three-month voting period, aimed at settling all ovarian cancer claims.
Nearly 99% of the talc-related lawsuits are related to ovarian cancer, with around 54,000 cases consolidated in a New Jersey federal court.
Previous efforts
Past settlement attempts and company's stance
J&J's previous attempts to settle these lawsuits through the bankruptcy of LTL Management, a subsidiary established to manage J&J's talc liability, have been rejected by the courts.
Despite facing these allegations, J&J maintains that its products are asbestos-free and do not cause cancer.
The company has stated that most lawyers representing plaintiffs in these cancer lawsuits, support their proposed settlement.
Approval prospects
Settlement approval and implications for future lawsuits
J&J is hopeful that the proposed settlement will receive the required 75% approval for a bankruptcy settlement, which would effectively halt litigation and prevent future lawsuits, or individuals from seeking separate legal recourse.
This proposed settlement builds on J&J's previous agreements with about 95% of individuals, who sued the company after being diagnosed with mesothelioma, a rare form of cancer associated with asbestos exposure.
Ongoing litigation
J&J's defense and recent verdicts
As it seeks approval for the settlement, J&J plans to continue its defense against ongoing lawsuits.
The company has stated that it has won 95% of ovarian cases tried to date, which includes every ovarian case tried over the last six years.
However, some significant verdicts have been in favor of the plaintiffs, such as a $2.12 billion award for 22 women who attributed their ovarian cancer to asbestos in J&J talc.