J&J to Settle $6.5B Talc Cancer Suits

J&J to Settle $6.5B Talc Cancer Suits

Introduction

Johnson & Johnson (J&J) subsidiary proposes $6.5B talc ovarian cancer lawsuit settlement.

J&J subsidiary plans to pay $6.475B over 25 years to resolve most pending lawsuits alleging its talc-based baby powder caused ovarian cancer. The settlement aims to resolve 99.75% of the pending lawsuits against J&J and its affiliates.

J&J announced its decision to stop selling talc-based baby powder in 2023 amid ongoing legal battles over the product. J&J's worldwide VP of litigation described the plan as the culmination of their consensual resolution strategy announced in October. The company has worked with counsel representing the majority of talc claimants to bring the litigation to a close.

The reorganization plan for J&J, revealed Wednesday, differs slightly from previous proposals by its subsidiary, LLT Management. Under the new strategy, claimants have a three-month solicitation period to vote on the proposal. If 75% of ovarian cancer claimants approve, the subsidiary may file for a consensual "prepackaged" Chapter 11 bankruptcy for confirmation.

According to J&J, this approach prioritizes the vote of claimants over the conflicting financial incentives of a small minority of plaintiff lawyers who stand to gain excessive legal fees outside of a reorganization. J&J clarified that remaining personal injury lawsuits related to mesothelioma will be addressed separately from the new proposal. The company reaffirmed its support for its talc-based products.

J&J's VP of litigation emphasized the impact of talc claims on U.S. businesses, citing meritless litigation, extreme judgments, forum shopping, distortion of scientific literature, and unregulated financing by financial institutions.

Overall, the proposed settlement represents a significant step towards resolving the talc ovarian cancer lawsuits against J&J, aligning with the company's efforts to address legal challenges and uphold its commitment to consumer safety.