Johnson & Johnson proceeds with settling talc cancer lawsuits worth $6.475 billion.
This agreement would enable the process of resolving the ongoing lawsuits related to talcum powder by filing for bankruptcy in a subsidiary company. This move will initiate a three-month voting period, during which they aim to come to a decision concerning the settlement of all current and future ovarian cancer claims. The vast majority of talc-related lawsuits targeted at Johnson & Johnson (JNJ) are linked to ovarian cancer, comprising around 54,000 cases centralized for litigation in a New Jersey federal court.
Before, two attempts by Johnson & Johnson to settle the claims by filing for bankruptcy on behalf of their subsidiary LTL Management failed.
Johnson & Johnson, which maintains that their talc-based products do not contain asbestos and do not trigger cancer, affirms that the settlement has received the approval of more than half of the attorneys representing the plaintiffs filing ligation against the firm. They feel certain that the deal will garner the 75% required support, which would effectively put an end to the litigation and thwart future lawsuits.
This deal shows a continuation of settlements from Johnson & Johnson, with roughly 95% of people who initiated lawsuits due to developing mesothelioma, a form of cancer linked to asbestos exposure, alongside their settlements with US states, which allege the company's failure to alert the public of the perceived dangers of their talc products.
Although they did not reveal the value of the mesothelioma settlements, they mentioned that they added a $2.7 billion incremental charge in their Q1 of 2024, to account for recent talc-related settlements.
LTL made a second bankruptcy submission, with a $8.9 billion proposal aimed at addressing not only the ovarian cancer claims but also the mesothelioma cancer lawsuits and states' consumer protection actions.
The initial bankruptcy filings had suspended the talc litigation from 2021-2023 but have been successfully reinstated post-July 2023, following a federal judge's decision to dismiss the previous bankruptcy case.
In March, Johnson & Johnson encountered a fresh chance to contest the scientific proof linking talc to ovarian cancer in the consolidated legal issues in the New Jersey federal court. This judge, supervising the cases, stated that recent legal alterations and updated scientific evidence warrant a re-evaluation, and he invited J&J to submit additional scientific arguments by the end of July.
Johnson & Johnson is prepared to contest the lawsuits while garnering votes for the settlement. They report that they've achieved favorable verdicts in 95% of their ovarian cases tried, including every ovarian case from the past six years. While certain cases have resulted in sizable verdicts for plaintiffs, they recently regained a case relating to ovarian cancer and were ordered to pay a $45 million penalty in a mesothelioma lawsuit.
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Johnson & Johnson's decision to settle talc cancer lawsuits comes as a strategic move to strengthen their business operations. This settlement, which includes resolving current and future ovarian cancer claims, is expected to bring a halt to the ongoing legal battles.
Moving forward, Johnson & Johnson's focus in the business sphere will shift towards rebuilding trust and reassuring their consumer base regarding the safety of their talc-based products.
Source: edition.cnn.com
