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If approved, Johnson & Johnson would pay $8.9 billion to resolve all current and future claims in its ongoing talc litigation.
Johnson & Johnson (J&J) announced its plans to pay $8.9 billion to resolve litigation regarding its cosmetic talc powder. The litigation, which alleges that the company’s talcum powder was linked to ovarian cancer and mesothelioma, were brought forth by lawyers representing nearly 70,000 affected individuals. In a public statement released on April 4, 2023, the company reiterated that neither this re-filing nor the original filing was an admission of wrongdoing or an indication that the company believed its talcum powder products are unsafe.
J&J’s subsidiary, LTL Management, has re-filed for voluntary Chapter 11 bankruptcy protection to obtain approval of a reorganization plan to enable the $8.9 billion payment, which would be payable over 25 years. This payment represents a $6.9 billion increase to the company’s original commitment in October 2021, when it initially filed for bankruptcy.
“The [c]ompany continues to believe that these claims are specious and lack scientific merit,” said Erik Haas, worldwide vice-president of Litigation, J&J, in the release. “However, as the Bankruptcy Court recognized, resolving these cases in the tort system would take decades and impose significant costs on LTL and the system, with most claimants never receiving any compensation. Resolving this matter through the proposed reorganization plan is both more equitable and more efficient, allows claimants to be compensated in a timely manner, and enables the [c]ompany to remain focused on [its] commitment to profoundly and positively impact health for humanity.”
Source: Johnson & Johnson