Johnson & Johnson proposes $5.5B settlement to resolve talc litigation

Johnson & Johnson has announced a proposed settlement of at least $5.5 billion to resolve thousands of lawsuits alleging its talc-based products caused cancer. This move comes after years of litigation and multiple failed attempts by the company to settle the claims through bankruptcy proceedings.

The company has long denied the allegations, asserting that scientific evidence shows its talc products are safe. However, the litigation has resulted in significant verdicts, settlements, and legal costs over more than a decade.

For the new settlement to take effect, it must be accepted by enough claimants to cover 95% of the estimated 76,000 ovarian cancer claims. This voluntary process differs from previous bankruptcy attempts, which were rejected by courts and aimed to bind all claimants, including those who might develop cancer in the future.

Plaintiffs' lawyers supporting the deal expressed confidence in its success, noting that claims would be paid in full within two years, a significantly faster timeline than the 25 years proposed in the bankruptcy settlement. A recent court ruling casting doubt on plaintiffs' ability to prove their cases may also encourage acceptance of the deal.

Despite the proposed settlement, Johnson & Johnson could still face future litigation from individuals who develop ovarian cancer and choose to sue the company later, given the latency period of the disease.