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Johnson & Johnson to pay $5.5B to resolve talc ovarian cancer lawsuits
The deal calls for up to $3.0 billion in 2027 and the remainder in 2028, after approval by 95% of claimants.
Johnson & Johnson said it will pay $5.5 billion to resolve roughly 76,000 lawsuits alleging its talc-based baby powder caused ovarian cancer, ending more than a decade of litigation over one of the company’s signature products, according to court filings and company statements. The payment schedule is structured so the company will pay up to $3 billion in 2027, with the rest in 2028, once the settlement is accepted by 95% of claimants. The announcement follows a recent federal ruling in New Jersey that challenged whether individual plaintiffs could prove talc specifically caused their cancer rather than other disease risk factors. Insurance Business notes that the settlement comes after the company tried several times to shift liability, including a “Texas two-step” bankruptcy maneuver that judges repeatedly found improper. After that route closed in spring 2025, J&J returned to individual trials and won most cases that went to a jury. The resolution also lands in a broader litigation and casualty insurance environment, with the case long used as shorthand for how verdicts and litigation costs can escalate. Insurance Business also highlights that J&J stopped purchasing new product liability coverage in 2005 and relies on self-insurance, including through its captive, Middlesex Assurance, while another ongoing New Jersey coverage dispute is expected to continue regardless of the settlement. Separately, it points to umbrella and excess liability rates rising 8.2% in the first quarter of 2026 and nuclear verdicts reaching a combined $31.3 billion in 2024.