Johnson & Johnson is poised to finalize a significant $6.48 billion settlement to resolve thousands of lawsuits alleging that its baby powder products cause cancer. According to Reuters, the company is set to announce on Friday that over 75% of claimants have agreed to the settlement, surpassing the necessary threshold for judicial approval.
To finalize the settlement, a subsidiary of Johnson & Johnson will file for bankruptcy protection. This milestone signifies a renewed attempt by the company to resolve the longstanding talc litigation. Previous bankruptcy filings were rejected by courts, leading to this latest effort.
Reaching the 75% agreement threshold is a legal requirement for the advancement of the plan to address current and future cases. The voting deadline passed on July 26, and Johnson & Johnson remains confident in securing the necessary support. The company has been reviewing votes from claimants this week and expects the proposed settlement to be presented to a bankruptcy judge for approval.
This settlement is a significant development in the ongoing talc litigation. In May, Johnson & Johnson announced its intention to settle numerous lawsuits concerning ovarian cancer related to cosmetic talc litigation for $6.475 billion. The company has already paid approximately $5 billion to settle talc-related claims, including those involving mesothelioma and other cancers, as well as allegations of illegal marketing practices by U.S. states.
The announcement of this settlement comes as Johnson & Johnson continues to face scrutiny over the safety of its talc products. The company has been named in thousands of lawsuits alleging that its talc products contain asbestos, which can cause cancer. While Johnson & Johnson has consistently denied these allegations, the company has faced significant financial and reputational damage as a result of the litigation.
This settlement represents a major step forward in resolving these long-standing lawsuits and could have a significant impact on the company’s future.
