A subsidiary of Johnson & Johnson has proposed a settlement amount of $6.48 billion over 25 years to cover allegations that its baby powder containing talc caused ovarian cancer. The lawsuits claimed that the talcum powder led to users developing ovarian cancer or mesothelioma. These allegations resulted in a decrease in J&J’s sales of baby powder, leading to the company stopping its talc-based products in 2020 and announcing plans to cease sales worldwide in 2022. The reorganization plan for the subsidiary includes a three-month solicitation period for ovarian claimants to vote on the plan, with a requirement of 75% of claimants voting in favor for the plan to move forward with a prepackaged Chapter 11 bankruptcy.
J&J stated that the proposed plan would resolve 99.75% of all pending talc lawsuits against it and its affiliates in the U.S. The remaining pending personal injury lawsuits related to mesothelioma will be addressed outside of the plan, with the company already having resolved 95% of mesothelioma lawsuits filed to date. State consumer protection claims will also be handled separately from the plan, with agreements in principle already in place according to J&J. The company has also reached an agreement to resolve all talc-related claims against it in the bankruptcy cases filed by its talc suppliers.
Despite the legal challenges and settlement discussions, J&J continues to maintain the safety of its products and denies that any of the talc-related claims have merit. The company emphasized that it stands behind the safety of its products and reiterated its commitment to consumer trust. As news of the settlement proposal emerged, J&J’s shares rose more than 2%, indicating a positive response from investors and stakeholders to the resolution of the ongoing legal issues surrounding its talc-based products.
The proposed settlement amount and reorganization plan represent a significant step towards resolving the numerous talc-related lawsuits and allegations against J&J. By reaching agreements with claimants and addressing the majority of pending lawsuits, the company aims to put an end to the legal battles that have affected its reputation and sales. With a focus on consumer safety and trust, J&J is working towards ensuring that its products meet the highest standards and continue to serve customers effectively and responsibly.
The settlement proposal and reorganization plan signal a proactive approach from J&J to address the legal challenges surrounding its talc-based products. By engaging in negotiations and reaching agreements with claimants, the company demonstrates a commitment to resolving the issues in a timely and efficient manner. With a focus on transparency and accountability, J&J aims to regain consumer confidence and move past the legal disputes to focus on its core mission of providing safe and reliable products to customers worldwide.
