AI Generated Image
Johnson & Johnson seeks $5.5 billion of long-running talc lawsuits
AP News • • business
Key Points:
- Johnson & Johnson has agreed to pay $5.5 billion to settle remaining lawsuits claiming its talc products caused ovarian cancer, contingent on at least 95% of claimants participating.
- The settlement follows a U.S. bankruptcy court judge's rejection of a previous $9 billion proposal by J&J's subsidiary, Red River Talc, and the company's decision not to appeal that ruling.
- A federal judge recently challenged plaintiffs to provide direct causation evidence linking J&J's talc products to cancer, which the company says plaintiffs cannot do, influencing the settlement decision.
- Under the new agreement, J&J will make an initial payment of up to $3 billion next year, with no further payments required until 2028, allowing the company to focus on its core business.
- J&J has previously settled about 95% of talc-related lawsuits, mesothelioma claims, and supplier disputes, and its shares rose over 2% following the settlement announcement.
