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Johnson & Johnson proposes $5.5 billion talc settlement to end marathon legal fight
ABC News - Breaking News, Latest News and Videos • • business
Key Points:
- Johnson & Johnson has agreed to a $5.5 billion settlement to resolve remaining lawsuits alleging its talc products caused ovarian cancer, contingent on at least 95% of claimants participating.
- The settlement follows a previous $9 billion proposal by subsidiary Red River Talc that was rejected by a U.S. bankruptcy judge, leading Johnson & Johnson to continue litigation instead of appealing.
- A recent federal court order challenged plaintiffs to provide direct causation evidence linking the company's talc products to cancer, which Johnson & Johnson highlighted as lacking in the cases.
- The company will make an initial payment of up to $3 billion next year, with no further payments required until 2028, aiming to conclude litigation and focus on its core business of developing medicines and devices.
- Johnson & Johnson has already settled about 95% of related lawsuits, including mesothelioma claims and consumer protection cases, and its shares rose over 2% following the settlement announcement.
