April 05, 2023 (MLN): Johnson & Johnson (J&J), the US pharmaceutical giant, has proposed an $8.9 billion settlement to resolve lawsuits dating back several years that claim its talcum powder products caused cancer.
The proposed settlement, which still requires approval from a bankruptcy court, aims to "equitably and efficiently resolve all claims arising from cosmetic talc litigation," according to the New Jersey-based company.
If approved by the court and a majority of the plaintiffs, the $8.9bn payout would be one of the largest product liability settlements in US history, comparable to those reached by tobacco companies and opioid manufacturers.
J&J has faced numerous lawsuits alleging that its talcum powder, which contained traces of asbestos, caused ovarian cancer. However, the company has never admitted wrongdoing and stopped selling its talc-based baby powder in the US and Canada in May 2020.
Erik Haas, J&J's vice president of litigation, stated in a company statement that the firm continues to believe that the claims are baseless and lack scientific merit.
The proposed settlement would be paid over 25 years through a J&J subsidiary called LTL Management LLC, which was established to address the claims and has filed for bankruptcy protection. LTL has reportedly secured commitments from over 60,000 current claimants to support the proposed settlement.
Notably, a previous settlement involving LTL was rejected by an appellate court, and the new bankruptcy filing and settlement will require approval from a bankruptcy court. J&J had previously proposed a settlement of $2bn in response to the allegations of talc-related cancers.
The company emphasized that the proposed settlement does not constitute an admission of wrongdoing and does not indicate a change in its stance on the safety of its talcum powder products.
