Germana Carillo Johnson & Johnson will pay $6.5 billion to settle nearly all talc ovarian cancer lawsuits in the U.S. — a deal, pending approval from plaintiffs, that would allow J&J to resolve lawsuits through a third bankruptcy filing of a subsidiary
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Johnson & Johnson is set to pay out $6.5 billion to settle the majority of legal cases filed by women who developed ovarian tumors linked to the use of talcum powder-based products. This settlement covers 99.75% of the total litigation, while the remaining cases, which involve mesothelioma, will be handled outside of this new resolution plan. The current agreement is closely tied to a third bankruptcy declaration by a subsidiary company.
These cancer cases have reportedly caused decades of financial and public relations issues for J&J, which has consistently maintained that its now-discontinued baby talc, along with other talcum powder products, are safe for consumer use (approximately 99% of talc-related lawsuits against J&J and its subsidiaries stem from ovarian cancer).
Pending approval from the claimants, the agreement would allow J&J to resolve the lawsuits through a third bankruptcy declaration by its subsidiary, LTL Management. Courts have rejected two previous attempts by J&J to settle the lawsuits through the bankruptcy of this subsidiary, which was created to absorb the company’s liabilities in the talc sector.
