Business

Johnson & Johnson Proposes Paying $9 Billion to Settle Talc Cancer claims

Johnson & Johnson put forth an $8.9 billion compensation offer on Tuesday to end long-running lawsuits alleging that the company’s talcum powder products contributed to cancer. The US giant said that the settlement still needs judicial approval. J&J’s subsidiary will also file for Chapter 11 bankruptcy protection. Additionally, it will swiftly and fairly settle any claims resulting from the cosmetic talc litigation. If approved by the court, it’ll be one of the largest product liability settlements in the US.

J&J says that more than 60,000 claimants, or the vast majority, back its proposal. According to bankruptcy legislation, the plan must receive the support of 75% of the claimants who can vote.

The company also stated that LTL Management LLC, a division J&J created to handle the lawsuit, had reapplied for bankruptcy protection in order to have the plan to spread out payments over 25 years approved.

The $8.9 billion that J&J would give to the LTL Management company would be paid over the following 25 years. The sum is higher than the $2 billion reserve established by the New Brunswick, New Jersey-based company in October 2021.

Allegations Against J&J

 

Thousands of lawsuits have been filed against the New Jersey-based company because of talcum powder that may have contained traces of asbestos and was linked to ovarian cancer. Although J&J has never admitted misconduct, in May 2020, it halted the selling of its talc-based baby powder in the United States and Canada.

In the cases filed against J&J, it was claimed that using talcum powder for feminine hygiene led to the development of ovarian cancer or mesothelioma, cancer that affects the lungs and other organs. The allegations led to a decline in J&J’s baby powder sales, which forced the company to cease marketing its talc-based products in 2020. J&J revealed plans to stop the product’s global sales last year.

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Malika Sahni

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