Johnson & Johnson Seeks to End Decade-Long Talc Litigation with $5.5 Billion Settlement
The voluntary deal would pay claims in full in less than two years, compared with 25 years under the failed bankruptcy plan.
- Johnson & Johnson offered $5.5 billion on Friday to settle tens of thousands of lawsuits alleging its talcum powder products caused ovarian cancer, aiming to resolve litigation spanning over a decade.
- J&J previously attempted to resolve these claims through bankruptcy three times, but courts rejected every filing; the company maintains its talc-based products are safe, though it ceased sales in the United States and Canada in 2020.
- This voluntary agreement covers around 76,000 claims and requires acceptance by at least 95% of claimants to proceed; plaintiffs' lawyers indicated the deal will pay claims in full in less than two years.
- A recent court ruling casting doubt on plaintiffs' evidence influenced this settlement strategy, while the firm's vice president of litigation stated the claims "lack scientific merit."
- By putting this major risk in the rearview mirror, J&J aims to maintain its financial momentum as a Dividend King, having raised payouts for at least 50 consecutive years while generating $22.6 billion in free cash flow.
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Johnson & Johnson offers $5.5 billion to settle talc lawsuits
US pharmaceutical giant Johnson & Johnson has offered $5.5 billion to settle tens of thousands of lawsuits claiming that its talcum powder products caused ovarian cancer, the company said. The proposed settlement aims to end a long-standing legal battle that has weighed on the New Jersey-based firm for years. J&J said the settlement covers around […]...Keep on reading: Johnson & Johnson offers $5.5 billion to settle talc lawsuits
The Economic Times
Times of IndiaJohnson & Johnson seeks to end decade-long talc litigation with $5.5 billion settlement
Johnson & Johnson has struck a substantial deal worth more than five billion dollars, aimed at settling numerous lawsuits that allege cancer linked to its talc products. Following an ineffective bankruptcy resolution attempt, this latest agreement will facilitate quicker claims disbursement while keeping the door open for others who develop cancer-related claims in the future.
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