- Johnson & Johnson agreed to pay $5.5 billion to settle 76,000 talc-related lawsuits
- The settlement requires 95% of eligible claimants to accept to resolve ovarian cancer claims
- J&J denies wrongdoing and maintains its talc products are safe and asbestos-free
Johnson & Johnson (J&J) has agreed to pay an estimated $5.5 billion to settle around 76,000 lawsuits in the United States alleging that prolonged use of its talc-based baby powder and other products caused ovarian cancer, the Financial Times reported.
The proposed agreement, which would resolve nearly all pending ovarian cancer claims against the healthcare company, is contingent on 95% of eligible claimants accepting the settlement. If approved, it could bring to a close one of the largest and longest-running product liability disputes in US corporate history.
The settlement follows more than a decade of litigation, multiple jury trials, appeals and three unsuccessful attempts by J&J to resolve the claims through bankruptcy proceedings.
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Despite agreeing to the payout, J&J reiterated that it does not admit any wrongdoing and continues to maintain that its talc-based products are safe and asbestos-free.
"While we are confident the company would have ultimately prevailed with further litigation, as it has in the vast majority of cases tried to date, this resolution allows the company to put this matter behind it and remain focused on its mission to develop medicines and devices that save lives," Erik Haas, J&J's Vice President of Litigation, said, according to Reuters.
The company expects to pay approximately $3 billion in 2027, with the remaining amount scheduled for 2028. However, the final payout could exceed $7 billion, depending on participation levels, Chris Seeger, one of the lead lawyers representing thousands of plaintiffs, told Reuters.
The lawsuits alleged that women developed ovarian cancer after years of using Johnson & Johnson's baby powder and other talc-based products, with many plaintiffs also claiming the talc contained asbestos, a known carcinogen. J&J has consistently denied both allegations, citing scientific evidence supporting the safety of its products.
The company discontinued sales of talc-based Johnson's Baby Powder in the US in 2020, replacing it with a cornstarch-based version.
Unlike the company's previous bankruptcy proposals, the latest settlement applies only to existing claims and does not bar future lawsuits. According to Reuters, this approach would allow compensation to be distributed to current claimants within about 18 months rather than over several years.
J&J had previously attempted to use the controversial Texas two-step strategy, creating a subsidiary that filed for bankruptcy to consolidate talc-related claims. The move faced legal challenges, and courts ultimately dismissed all three bankruptcy filings, allowing the litigation to proceed.
The settlement proposal will now be circulated among eligible claimants. If the required approval threshold is not achieved, J&J could once again face prolonged litigation across US courts.
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