Johnson & Johnson (NYSE:JNJ) has reached an agreement to resolve tens of thousands of lawsuits in the US alleging that its talc-based products, including its baby powder, caused ovarian cancer, with the company committing up to $5.5 billion to settle the remaining claims.
The proposed resolution would bring an end to a long-running legal battle that has involved around 76,000 ovarian talc claims and weighed on the healthcare company for more than a decade
The settlement is subject to participation from plaintiff firms representing at least 95% of the remaining claims. Under the agreement, Johnson & Johnson (NYSE:JNJ) would make per-claim payments, with the first payment of no more than $3 billion expected in 2027 and no further payments due before 2028. The company said the proposed settlement follows a recent ruling from the federal Multi-District Litigation (MDL) court regarding the ability of plaintiffs to prove that Johnson & Johnson’s talc products caused individual cases of ovarian cancer.
Johnson & Johnson has maintained that its talc products are safe and has denied allegations that they cause cancer. The company said the MDL court’s ruling supported its position after plaintiffs withdrew expert testimony related to specific causation in two bellwether cases. “After decades of litigation and full vetting of the science in an extensive hearing, plaintiffs effectively conceded their inability to prove specific causation by withdrawing their experts on the topic in two bellwether cases,” Erik Haas, Worldwide Vice President of Litigation at Johnson & Johnson, said in a statement. “While we are confident the company would have ultimately prevailed with further litigation, as it has in the vast majority of cases tried to date, this resolution allows the company to put this matter behind it and remain focused on its mission to develop medicines and devices that save lives.” The company said it has already resolved about 95% of filed mesothelioma lawsuits, along…