Johnson & Johnson Makes A $9 Billion Deal To Resolve Talc Disputes

In order to settle the tens of thousands of lawsuits Johnson & Johnson is facing in North America, which allege that its baby powder and other talc-based products cause cancer, the company has offered to pay close to $9 billion.

The healthcare behemoth declared it continued to view the allegations as “specious,” but hoped the fresh settlement offer would help put an end to its legal dispute.

The amount is a significant increase from the $2 billion it originally suggested.

Those connected to the case, it claimed, had expressed strong approval for the revised offer.

The business is dealing with more than 40,000 claims from former clients who claim that its talc-based baby powder caused cancer, some of whom claim the product included asbestos, which is known to cause cancer.

In 2020, it ceased selling its talc-based baby powder in the US, blaming “misinformation” for lowering demand for the item, which was used to reduce diaper rash and for other cosmetic purposes, such as dry shampoo. It had intentions to halt sales globally last year.

The business had been selling the infant powder for about 130 years prior to that choice. It still offers a cornstarch-containing version of the product for sale.

Since establishing a subsidiary in charge of the claims in 2021, the corporation has been attempting to settle the litigation in bankruptcy court.

However, it encountered difficulties when a bankruptcy court decision earlier concluded that the subsidiary was not in financial hardship and could not settle the litigation through the bankruptcy system.

“The company continues to believe that these claims are specious and lack scientific merit,” said Erik Haas, worldwide vice president of litigation for Johnson & Johnson.

But he said “resolving these cases in the tort system would take decades and impose significant costs on LTL and the system, with most claimants never receiving any compensation.”

“Resolving this matter through the proposed reorganisation plan is both more equitable and more efficient, allows claimants to be compensated in a timely manner, and enables the company to remain focused on our commitment to profoundly and positively impact health for humanity.”

In the talc litigation it faced, Johnson & Johnson claimed that it had prevailed in most of them. However, it has been saddled with some hefty setbacks, such as one ruling where 22 women received judgments totaling more than $2 billion.

According to Johnson & Johnson, around 60,000 current claimants have agreed to approve the revised settlement conditions.

(Adapted from


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