Johnson & Johnson is proposing paying nearly $9bn to settle lawsuits from tens of thousands of consumers who claim the consumer giant’s products containing talc powder cause cancer, the company announced in a securities filing on Tuesday.
Lawyers representing some of the more than 60,000 claimants in talc suits against J&J praised the offer, which still needs to be approved by a bankruptcy judge.
"The newly announced settlement marks a significant victory for the tens of thousands of women suffering from gynecological cancers caused by J&J’s talc-based products," one group of plaintiffs’ law firms told CBS News. "Under the terms of the agreement, all talc claimants will be able to have their claims evaluated and assessed within one year of plan confirmation, ensuring a swift and efficient resolution for victims of the company’s misconduct."
In a statement to CNBC, J&J said the proposed payout didn’t amount to an admission of wrongdoing.
“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,” Erik Haas, J&J’s worldwide vice president of litigation, said.
“The Company continues to believe that these claims are specious and lack scientific merit,” he added.
The proposed settlement would see the company pay out $8.9bn over 25 years through a subsidiary called LTL Management, which filed for bankruptcy protection as part of the proposed offer. J&J spun off LTL in October of 2021, a tactic seen as an attempt to absorb liability and litigation from the main company, while also having LTL file for bankruptcy.
In January of this year, a US appeals court overturned the subsidiary’s bankruptcy claims, finding the company wasn’t in “financial distress.”
J&J knew for years its some of its talc products showed contamination with asbestos and posed health risks, and the company used its resources to influence cosmetics regulations and scientific research on the health effects of talc, according to a Reuters investigation.
