Johnson & Johnson has agreed to a $700 million compensation with 42 U.S. states and Washington, D.C., dealing with accusations that the company misled buyers about the safety of its talc-based products, such as baby powder, which have been liable for causing cancer.
Johnson & Johnson Settled $700 Million About Issues on Its Talc Products
This agreement, led by Florida, North Carolina, and Texas, represents an important step in addressing consumer safety issues. However, Johnson & Johnson did not accept any violation as part of the agreement and maintains that its talc products are safe and free of asbestos.
Despite this settlement, Johnson & Johnson is still facing tens of thousands of accusations, mainly from women with ovarian cancer and others with mesothelioma, cancer-related to asbestos risk.
As of March 31, there were roughly 61,490 outstanding lawsuits against the company. In response to these legal difficulties, J&J stopped selling talc-based baby powder worldwide last year, choosing to use corn starch instead.
The company has made multiple attempts to resolve the litigation through bankruptcy filings of a subsidiary created to manage its talc liabilities, but these attempts have been unsuccessful in court.
Most recently, on May 1, Johnson & Johnson proposed a $6.48 billion settlement to resolve the majority of the talc litigation via a third bankruptcy attempt. The company has also set aside an $11 billion reserve to cover all talc-related accountability.
Erik Haas, J&J's worldwide vice president of litigation, highlighted the company's commitment to resolving the talc litigation intensively.
J&J desires to settle the claims of those who choose not to participate in the proposed consensual bankruptcy resolution through continuous litigation or agreements.
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Settlement Regarding Consumer Safety Involved 42 States and Washington, DC
Johnson & Johnson, a major U.S. pharmaceutical and cosmetics company, has agreed to pay $700 million to settle allegations of misleading customers about the safety of its talcum-based powder products, as declared by New York's attorney general on Tuesday.
In the agreement with 42 states and the District of Columbia, Johnson & Johnson did not accept violation, despite withdrawing the product from the North American market in 2020.
The New Jersey-based company reached a preliminary agreement in January after facing several lawsuits accusations that its talcum powder, which contained traces of asbestos, contributed to ovarian cancer.
New York Attorney General Letitia James stated, "No amount of money can erase the pain caused by Johnson & Johnson's talc products, but today families can find solace knowing that the company is being held accountable for the harm it caused."
Under the settlement terms, New York will receive $44 million in four installments over three years.
Johnson & Johnson's Worldwide Vice President of Litigation, Erik Haas, affirmed the company's commitment to resolving talc-related litigation comprehensively, including finalizing an agreement with a consortium of 43 State Attorneys General.
In April 2023, the group proposed an $8.9 billion agreement aimed at resolving all cosmetic talc claims through payments distributed over 25 years via a subsidiary, LTL Management LLC, which has filed for bankruptcy protection after a judge initially rejected the plan.
Haas emphasized, "We will continue addressing claims from those who opt out of our proposed bankruptcy resolution through legal processes or settlements."
A summary of studies circulated in January 2020 involving 250,000 American women did not establish a statistical link between talc use on genitals and ovarian cancer risk.
