Massive settlement aims to end years of litigation
Johnson & Johnson proposed a $5.5 billion settlement to resolve long-running lawsuits. The claims allege that its talc-based products, including baby powder, caused ovarian cancer. The deal could end years of persistent legal battles for the pharmaceutical giant.
The agreement covers approximately 76,000 claims. J&J previously settled most cases alleging its talcum powder contained asbestos and caused mesothelioma. At least 95 percent of plaintiffs in pending state and federal cases must accept the terms before the settlement becomes final.
Company leaders called the deal an efficient conclusion to the litigation. Over recent years, courts forced J&J to pay billions of dollars in damages.
Product reformulation follows failed legal strategy
J&J maintains that its talc products are safe and never contained asbestos. However, the company stopped selling talc-based baby powder in the US in 2020. It phased out talc products globally by 2023. J&J now exclusively sells cornstarch-based baby powder worldwide.
The pharmaceutical giant previously tried to resolve the liabilities through bankruptcy court. It created a subsidiary for the product liabilities and filed for Chapter 11 bankruptcy. However, a federal judge rejected that strategy in 2023 and blocked the attempt.
@ anp | NEWS BARINPORT
