Johnson & Johnson has proposed a $6.475 billion settlement to resolve tens of thousands of lawsuits alleging that its baby powder and talc products contain asbestos and cause ovarian cancer. The deal involves filing for bankruptcy of a subsidiary company to reach a consensus on settling current and future ovarian cancer claims, which make up 99% of the talc-related lawsuits against the company. Previous attempts to resolve the lawsuits through bankruptcy were rejected by the courts.
Despite maintaining that their products do not contain asbestos or cause cancer, J&J has support from the majority of attorneys representing plaintiffs who have filed cancer lawsuits against the company. The deal aims to reach a 75% support threshold needed for a bankruptcy settlement that would end the litigation entirely, preventing future lawsuits and opting out of the deal to pursue separate lawsuits. This proposed deal would follow J&J’s settlements with mesothelioma cases and states that alleged the company failed to warn consumers about the dangers of talc products.
J&J has recorded an incremental charge of $2.7 billion in the first quarter of 2024 to account for recent talc-related settlements, although the exact value of the mesothelioma settlements was not disclosed. Previous bankruptcy filings addressed mesothelioma cancer lawsuits, states’ consumer protection actions, and ovarian cancer claims, putting the talc litigation on hold from 2021 to 2023. However, trials have resumed after a federal judge ruled that the latest bankruptcy case should be dismissed in July 2023.
In March, J&J received a new opportunity to contest scientific evidence linking talc to ovarian cancer in the centralized litigation in a New Jersey federal court. The judge overseeing the cases called for a fresh review due to changes in the law and new scientific evidence, asking J&J to present new arguments by late July. The company continues to defend itself against the lawsuits while working to gather votes on the settlement, highlighting that they have prevailed in 95% of ovarian cases tried to date despite some large verdicts for plaintiffs.
Recent verdicts include a $2.12 billion award in favor of 22 women who attributed their ovarian cancer to asbestos in J&J talc. In the past month, J&J was ordered to pay $45 million in a mesothelioma case while also winning an ovarian cancer case. The ongoing legal battles and proposed settlement demonstrate the complexity and challenges faced by Johnson & Johnson in addressing the allegations against its talc products and navigating the legal landscape surrounding cancer claims.
