Johnson & Johnson Sets Aside $5.5 Billion to Settle U.S. Talc Cancer Claims

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Johnson & Johnson has reserved $5.5 billion to resolve tens of thousands of U.S. lawsuits alleging that its talcum‑powder products caused ovarian cancer, a move that would close one of the most sprawling mass‑tort battles in recent American corporate history. The company said it plans to pay up to $3 billion in 2027, with remaining payouts after 2028, and called the effort an attempt to end what it described as “meritless 15‑year litigation.” The proposal covers about 76,000 claims and requires approval from law firms representing at least 95% of plaintiffs.

The lawsuits center on accusations that talc in products such as J&J’s baby powder contained asbestos, a mineral linked to cancer. J&J has repeatedly denied that its products caused ovarian cancer and maintains that its talc was safe. Scientific findings have been mixed: some studies suggest an increased risk of ovarian cancer from genital talc use, while others do not show a clear association. Regulators in the United States classify cosmetic talc separately from pharmaceutical‑grade talc, and international agencies have issued varying assessments on potential contamination risks, contributing to years of scientific and legal disputes.

The company’s legal strategy has drawn scrutiny after multiple attempts to channel talc claims into a subsidiary bankruptcy, a maneuver critics labeled the “Texas two‑step.” Courts rejected those efforts, forcing J&J to pursue a broad settlement instead. Analysts said the new reserve is significant for a company that recently spun off its consumer‑health division, Kenvue, and may influence future product‑liability planning across the industry.

J&J began phasing out talc‑based baby powder in North America in 2020, switching to a cornstarch formula, and extended the change globally in 2023. The company said the decision was made to simplify its product line and reiterated that the talc‑based version was safe. International markets reacted unevenly, with some countries reviewing cosmetic‑talc standards and others seeing new lawsuits filed outside the United States.

Plaintiff groups said they were evaluating the offer, and legal analysts noted that reaching the 95% threshold will determine whether the settlement proceeds or whether litigation continues into another decade. The company said it hopes the agreement will bring closure to a long‑running dispute that has shaped public perceptions of one of its most recognizable consumer product.

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