Johnson & Johnson will pay $6.5 billion to resolve nearly all talc ovarian cancer lawsuits in U.S.
Source: CNBC
Published Wed, May 1 2024 6:31 AM EDT Updated 4 Min Ago
Johnson & Johnson on Wednesday said it plans to pay $6.5 billion over 25 years to settle nearly all of the thousands of lawsuits in the U.S. claiming its talc-based products caused ovarian cancer, pending approval of the claimants.
Those cases have for decades caused financial and public relations trouble for J&J, which contends that its now-discontinued talc baby powder and other talc products are safe for consumers. About 99% of the talc-related lawsuits filed against J&J and its subsidiaries stem from ovarian cancer.
The company recorded a charge of about $2.7 billion in the first quarter to raise its reserve for talc claims to about $11 billion.
The deal, pending approval by claimants, would allow J&J to resolve the lawsuits through a third bankruptcy filing of a subsidiary company, LTL Management. Courts have rebuffed J&’s two previous efforts to resolve the lawsuits through the bankruptcy of that subsidiary, which was created to absorb the company’s talc liabilities.
Read more: https://www.cnbc.com/2024/05/01/johnson-johnson-will-pay-6point5-billion-to-resolve-nearly-all-talc-ovarian-cancer-lawsuits-in-us.html
Article updated.
Previous article -
Johnson & Johnson on Wednesday said it will pay $6.5 billion to settle nearly all of the thousands of lawsuits in the U.S. claiming its talc-based products caused ovarian cancer.
The deal would allow J&J to resolve the lawsuits through a third bankruptcy filing of a subsidiary company, LTL Management.
It will begin a three-month voting period for claimants, in hopes of reaching a consensus on a settlement of all current and future ovarian cancer claims. About 99% of the talc-related lawsuits filed against J&J and its subsidiaries stem from ovarian cancer.
J&J said the remaining pending lawsuits relate to a rare cancer called mesothelioma and will be addressed outside of the new settlement plan.
Original article -
Johnson & Johnson on Wednesday said it will pay $6.5 billion to resolve nearly all lawsuits in the U.S. claiming its talc-based products caused ovarian cancer.
This story is developing. Please check back for updates.
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