Johnson & Johnson has agreed to pay an $8.9 billion settlement to settle lawsuits alleging that their talcum powder products caused cancer. The move could put an end to the years-long court battle.
The pharmaceutical business based in the United States stated that the proposed settlement, which still needs to be approved by a bankruptcy court, “would equitably and efficiently address all claims originating from cosmetic talc litigation.”
In North America, Johnson & Johnson is facing tens of thousands of lawsuits from consumers who claim that baby powder and other talc-based products cause cancer.
Johnson & Johnson has never admitted wrongdoing; nonetheless, in May 2020, the firm discontinued sales of its talc-based baby powder in the United States and Canada.
J&J’s subsidiary seeks bankruptcy protection to resolve cosmetic talc litigation
According to the press release, the cancer allegations are based on the assertion that cosmetic talc causes ovarian cancer and mesothelioma, which has been refuted by independent specialists, as well as governmental and regulatory organizations, for decades.
J&J’s vice president of litigation, Erik Haas, said in a statement: “The company continues to believe that these claims are specious and lack scientific merit.”
Haas added, “However, as the Bankruptcy Court recognized, resolving these cases in the tort system would take decades and impose significant costs on LTL and the system, with most claimants never receiving any compensation.”
“Resolving this matter through the proposed reorganization plan is both more equitable and more efficient, allows claimants to be compensated in a timely manner, and enables the Company to remain focused on our commitment to profoundly and positively impact health for humanity,” it added.
According to the firm, it’s subsidiary LTL Management LLC (LTL) has re-filed for voluntary bankruptcy protection in order to seek approval for a reorganization plan that “will equitably and efficiently resolve all claims arising from cosmetic talc litigation”.
The amount is an increase of $6.9 billion over the billion already committed in conjunction with LTL’s initial bankruptcy filing in October 2021, according to the firm. (https://woodlees.com)