Johnson & Johnson announced an agreement Monday to pay $5.5 billion to resolve tens of thousands of lawsuits claiming its talc-based baby powder and other talc products caused ovarian cancer, a settlement the company said would bring finality to 15 years of litigation.
The settlement encompasses approximately 76,000 claims, spanning federal court proceedings in New Jersey as well as related state court cases, and accounts for virtually all of the talc lawsuits still pending against the company, J&J said
It requires acceptance by at least 95% of ovarian cancer claimants before it can take effect. J&J expects to make a first payment of no more than $3 billion in 2027, with additional payments due no earlier than 2028, the company said. The total payout could exceed $5.5 billion.
Chris Seeger, an attorney representing about 2,500 claimants who helped negotiate the deal, said J&J could end up paying $7 billion or more, according to CNBC. The settlement assigns values to qualifying claims but does not cap J&J’s total liability. The new structure is designed to deliver payment to all claimants within 18 months, a far faster timeline than the decade-plus payout schedules envisioned under the earlier bankruptcy plans, according to NBC News.