Johnson & Johnson is moving forward with a $6.475 billion proposed settlement to resolve tens of thousands of lawsuits claiming its baby powder and other talc products contained asbestos and caused ovarian cancer. This deal attempts to resolve the majority of talc-related lawsuits, with ovarian cancer claims accounting for 99% of the cases, including approximately 54,000 centralized in a New Jersey federal court. The company plans to use a third bankruptcy filing of a subsidiary to achieve this, launching a three-month voting period to secure consensus on the settlement.
The current $6.475 billion offer specifically targets ovarian cancer claims. This differs from a previous $8.9 billion deal proposed in its second bankruptcy filing, which also intended to address mesothelioma cancer lawsuits and state consumer protection actions. J&J expressed confidence that the current deal will reach the 75% support threshold necessary for a bankruptcy settlement, which, if achieved, would effectively end the litigation entirely and prevent future lawsuits or individuals from opting out.
Despite the proposed settlement, J&J maintains that its products are safe, do not contain asbestos, and do not cause cancer. The company stated it has prevailed in 95% of ovarian cases tried to date over the last six years and will continue to defend itself while gathering settlement votes. J&J recorded an incremental charge of $2.7 billion in the first quarter of 2024 to account for recent talc-related settlements, which also includes previously undisclosed mesothelioma settlements, where approximately 95% of claimants have already settled. Courts have previously rejected J&J's two prior attempts to resolve these lawsuits through subsidiary bankruptcies, with trials resuming after a federal judge dismissed the last bankruptcy case in July 2023.
