This Tuesday saw US pharmaceutical giant Johnson & Johnson proposing an $8.9 billion settlement to resolve years-old lawsuits claiming that its talcum powder products caused cancer.
J&J Proposing $8.9 Billion Settlement
According to the New Jersey-based company, the proposed settlement, which still needs the approval of a bankruptcy court, “will equitably and efficiently resolve all claims arising from cosmetic talc litigation.”
After approval by the court and a majority of the plaintiffs, the $8.9 billion payout would be one of the largest product liability settlements ever in the United States, ranking alongside those entered into by tobacco companies and, more recently, opioid manufacturers.
Facing Thousands of Lawsuits
It appears that the J&J has been facing thousands of lawsuits over talcum powder containing traces of asbestos blamed for causing ovarian cancer.
Although the firm has never admitted wrongdoing, but it has stopped selling its talc-based baby powder in the United States and Canada in May 2020.
In a statement, J&J’s vice president of litigation, Erik Haas said, “The company continues to believe that these claims are specious and lack scientific merit.”
While talking about the settlement, J&J said the $8.9 billion would be paid to the tens of thousands of claimants over 25 years through a J&J subsidiary, LTL Management LLC.
This company was set up to address the claims and has filed for bankruptcy protection.
Further adding, LTL has “secured commitments from over 60,000 current claimants to support a global resolution on these terms.”
Earlier, in a previous settlement involving LTL, it was rejected by an appellate court and a bankruptcy court will now have to approve the new LTL bankruptcy filing and settlement.
Prior to this, J&J had proposed a settlement of $2 billion in response to the allegations that its cosmetic talc caused gynecological cancers.
According to the company, the newly proposed settlement is not “an admission of wrongdoing, nor an indication that the company has changed its longstanding position that its talcum powder products are safe.”
Further adding, “Nonetheless, resolving this matter as quickly and efficiently as possible is in the best interests of the company and all stakeholders,” J&J said.
The settlement “allows claimants to be compensated in a timely manner, and enables the company to remain focused on our commitment to profoundly and positively impact health for humanity,” Haas said.
