Johnson & Johnson has put forward a proposal to pay $6.5 billion to settle claims in the United States that its talc products, such as baby powder, led to ovarian cancer.
The company claimed that the proposed amount is a better recovery option than what claimants could expect from a trial.
Johnson & Johnson is currently facing numerous lawsuits alleging that its talc products contained asbestos, leading to ovarian cancer and mesothelioma.
The company has denied that its baby powder contains asbestos or causes cancer. However, in 2020, it announced plans to discontinue the sale of baby powder in the US and Canada due to misinformation.
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Overall, the company has allocated $11 billion to address talc litigation.
Proposed Settlement Details
The proposed settlement would resolve nearly all pending talc lawsuits in the US against Johnson & Johnson and its affiliates.
Under the settlement, a three-month voting period will begin to reach an agreement on resolving current and future ovarian cancer claims.
If 75% of claimants agree to the plan, the company will settle the lawsuits through a subsidiary’s bankruptcy filing.
This approach aims to prevent future lawsuits related to ovarian cancer claims and block individuals from pursuing separate legal actions against the company.
Johnson & Johnson stated that the majority of current ovarian claimants’ attorneys support the settlement plan.
Erik Haas, Johnson & Johnson’s worldwide vice president of litigation, emphasized that the company has been working with talc claimants’ counsel to bring closure to the litigation.
Courts Rebuff Bankruptcy Efforts
Previous bankruptcy attempts by Johnson & Johnson’s subsidiary were rejected by courts, citing no legitimate need for bankruptcy protection due to lack of financial distress.
Attorneys representing cancer victims had mixed reactions to the proposed settlement, with some seeing it as a path to resolution and others criticizing the company’s tactics.
Despite the settlement proposal, Johnson & Johnson reiterated its stance that the claims against it are unfounded and criticized the ongoing litigation.
Reuters contributed to this report.
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