Johnson & Johnson to Pay $6.5 Billion Settlement to Resolve Product Linked Cancer Lawsuits
Johnson & Johnson, a multinational pharmaceutical and medical technologies corporation, announced Wednesday that it plans to settle thousands of lawsuits against the company over its talc-based products, which plaintiffs argue caused ovarian cancer.
If it receives at least 75% approval of the more than 50,000 claimants, Johnson & Johnson will pay $6.5 billion over 25 years—one of the largest settlements ever—to resolve lawsuits alleging that the company’s talcum powder products were contaminated with asbestos, a known human carcinogen, caused ovarian cancer.
“Talc is a naturally occurring mineral that can appear alongside asbestos in mines,” the Guardian explained. “Investigations by Reuters and the New York Times found J&J worried about the presence of asbestos in its talc for decades, but worked to keep the information from the public.”
Johnson & Johnson has already doled out billions to 22 plaintiffs who developed cancer that they say was linked to the company’s talc powder products, which have since been largely discontinued. The company previously paid $700 million to resolve an investigation by more than 40 states which found that Johnson & Johnson misled customers in its advertising of the efficacy and safety of talc powder.
The pharmaceutical giant also paid $45 million to the family of a mother of six who passed away from cancer that she developed at least in part due to the powder, according to the Daily Mail.
Should the claimants approve the latest offer, the company would be able to settle the lawsuits by filing a third bankruptcy of a subsidiary company, LTL Management.
The company believes that it has the “significant support of the overwhelming majority of the claimants.”
“We firmly believe this plan is in the best interest of claimants and should receive a favorable and immediate confirmation from the bankruptcy court,” said Erik Haas, J&J’s worldwide vice president of litigation, according to CNBC.
