Johnson & Johnson offered to pay close to $9 billion to settle the tens of thousands of lawsuits that alleged that its baby powder and other talc-based products cause cancer.
The healthcare behemoth declared it continued to view the allegations as “specious,” but hoped the fresh settlement offer would help put an end to its legal battle. The amount is a significant increase from the $2 billion it originally proposed. Those connected to the case have expressed strong support for the revised offer.
More than 40,000 lawsuits have been filed against the corporation by former customers who claimed that using its talc-based powder caused cancer. Some of the cases also claimed that the product included asbestos, which is known to cause cancer.
Johnson & Johnson has proposed an $8.9 billion settlement to resolve lawsuits that claimed its talcum powder products caused cancer.@eriknjoka tells you more
— WION (@WIONews) April 5, 2023
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In 2020, the company discontinued selling its talc-based baby powder in the US, blaming “misinformation” for reducing demand for the item, which was used to reduce diaper rash and for other cosmetic purposes, such as a dry shampoo. It had intentions to halt sales worldwide, the company announced last year.
The company had been selling baby powder for about 130 years before that decision. It continues to market a corn-starch-containing version of the product. Since 2021, when it established a subsidiary to handle the claims, the business has been attempting to settle the litigation in bankruptcy court.
“The company continues to believe that these claims are specious and lack scientific merit,” said Erik Haas, worldwide vice president of litigation for Johnson & Johnson.
But he said, “resolving these cases in the tort system would take decades and impose significant costs on LTL and the system, with most claimants never receiving any compensation.”
“Resolving this matter through the proposed reorganisation plan is both more equitable and more efficient, allows claimants to be compensated promptly, and enables the company to remain focused on our commitment to profoundly and positively impact health for humanity,” Erik further added.
Other the other hand Alicia O’Neill of Watts Guerra, one of the firms representing plaintiffs said “This settlement is a testament to the tens of thousands of women who have battled both cancer and the court system to achieve justice for themselves.” She further added, “These strong women have ensured that no other woman will be exposed to this unnecessary danger, they deserve compensation and closure.”
In the talc litigation it faced, Johnson & Johnson claimed that it had won most of the cases. Yet, it has been saddled with some hefty setbacks, such as one ruling where 22 women received judgements totalling more than $2 billion. According to Johnson & Johnson, around 60,000 current claimants have agreed to approve the revised settlement conditions.
