J&J proposes to settle talc cancer lawsuits for $6.5 billion
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.
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.
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.
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.
