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Johnson & Johnson reaches at least $5.5 billion talc settlement
The deal would move forward only if enough claimants accept it to cover 95% of an estimated 76,000 ovarian cancer cases.
Johnson & Johnson has reached a talc litigation settlement worth at least $5.5 billion, seeking to end thousands of lawsuits that have weighed on the company for more than a decade, according to Reuters.
The suits allege that J&J talc-based baby powder and other products caused ovarian cancer, while the company has denied the claims, citing decades of scientific testing that it says show its talc products are safe.
Reuters reports that the settlement will proceed only if it is accepted by enough people to cover 95% of an estimated 76,000 ovarian cancer claims, which a plaintiffs lawyer said could happen in a few months.
J&J previously attempted three bankruptcy-based resolutions by moving talc liabilities into a new subsidiary and placing it into bankruptcy proceedings, but each was rejected by courts, while the new settlement is voluntary and not subject to bankruptcy court approval. The plaintiffs’ lawyers said the settlement would pay claims in full in under two years, compared with more than 25 years under the bankruptcy approach.