Johnson & Johnson offers nearly $9B to settle talc lawsuits
Johnson & Johnson has offered to pony up $8.9 billion over 25 years to settle all current and future claims that its talc baby powder contained asbestos and caused cancer to some consumers.
The amount is one of the largest consumer liability settlements in history. As part of the settlement, Johnson & Johnson’s subsidiary LTL Management has filed for Chapter 11 bankruptcy protection to obtain approval of a reorganization plan to resolve the litigation claims over its talc powder. The $8.9 billion is higher than the original $6.9 billion that Johnson & Johnson had proposed earlier.
Johnson & Johnson has never admitted to wrongdoing nor that its talc powder ever contained asbestos. Johnson & Johnson and its other affiliates did not file for bankruptcy.
“The company continues to believe that these claims are specious and lack scientific merit,” Erik Haas, worldwide vice president of litigation, Johnson & Johnson, said in a statement. “However, as the bankruptcy court recognized, resolving these cases in the tort system would take decades and impose significant costs on LTL and the system, with most claimants never receiving any compensation. Resolving this matter through the proposed reorganization plan is both more equitable and more efficient, allows claimants to be compensated in a timely manner, and enables the company to remain focused on our commitment to profoundly and positively impact health for humanity.”
The settlement stems from a class action lawsuit from women who say Johnson & Johnson’s talc baby powder gave them ovarian cancer. They claimed the baby powder also contained asbestos, which is a naturally occurring mineral found in rock and soil. Talc is mined from the earth and can sometimes be tainted with asbestos, which can cause cancers, mesothelioma and other diseases when it enters the human body.
"This is the largest products liability settlement ever realized after a bankruptcy filing. Today, J&J committed $8.9 billion to fairly compensate these deserving women," attorney Mikal Watts of Watts Guerra and TalcPowderJustice.com, who represented the women in the lawsuit, said in a statement April 4. "Our job is to get our clients restitution for their injuries, and this settlement is the culmination of over a decade of fighting for justice."
TalcPowderJustice.com is a coalescing force of plaintiffs, healthcare professionals, and attorneys, led by Watts of Watts Guerra law firm.
The women in the case would receive $12.08 billion in the settlement over 25 years, according to Watts if the proposal is agreed on by the bankruptcy court. The net present value of the deal is $8.9 billion. The women will see their claims paid by the Talc Trust within one year of confirmation, and future talc claimants will be paid by the trust in futute payments ove rhte next 25 years.
Johnson & Johnson has denied the claims that its baby powder contained asbestos or led to cancers. According to the company, it has won the majority of jury trials that have been litigated to date, and it maintains that the claims that the product causes mesothelioma and ovarian cancer has been rejected by “independent experts, as well as governmental and regulatory bodies, for decades.”
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."