Johnson & Johnson agrees to pay $5.5B to settle talc lawsuits
Fox Business • • business
Key Points:
- Johnson & Johnson (J&J) announced a proposed $5.5 billion settlement to resolve about 76,000 lawsuits alleging its baby powder and talc products caused ovarian cancer, potentially ending years of litigation.
- The settlement covers claims consolidated in federal and state courts and requires approval from 95% of ovarian cancer claimants before becoming final.
- J&J denies wrongdoing, stating plaintiffs failed to prove the talc products caused cancer, and views the settlement as a way to efficiently conclude the litigation while focusing on its core business.
- Payments are expected to begin in 2027, with an estimated $3 billion payout that could increase depending on participation, and the settlement excludes future lawsuits to expedite compensation for current claimants.
- The deal follows a series of courtroom victories for J&J, including doubts cast by a federal judge on plaintiffs' ability to prove causation, and comes after the company ceased selling talc-based baby powder in the U.S. in 2020.
