A subsidiary of Johnson & Johnson is now proposing to pay approximately $6.48 billion over 25 years as part of a settlement in the U.S. to cover allegations that its baby powder containing talc caused ovarian cancer.
Lawsuits against J&J claimed talcum powder led to ovarian cancer or mesothelioma. Allegations centered on use for feminine hygiene.
Amidst declining sales of baby powder, influenced by the claims, J&J discontinued its talc-based products in 2020. Subsequently, in 2022, the company decided to halt global sales of the product.
J&J stated that the reorganization plan for the subsidiary, announced Wednesday, differed significantly from the previous one. This new plan aims to address issues more effectively. Those differences include a three-month solicitation period during which ovarian claimants can vote for or against the plan. This is something that was denied in prior bankruptcy cases, the company said. And if 75% of claimants vote in favor of the plan, a subsidiary may file a “prepackaged” Chapter 11 bankruptcy to secure its confirmation.
J&J said that the plan would resolve 99.75% of all pending talc lawsuits against it and its affiliates in the U.S.
Amid years of litigation and numerous jury verdicts, J&J talc lawsuits settlement emerges. Transitioning from legal battles, J&J aims to address consumer concerns. This resolution marks a pivotal moment in addressing health issues associated with talc products.
The J&J talc lawsuits settlement, although substantial, only represents a fraction of potential liabilities. However, this agreement offers relief to both plaintiffs and J&J. Moreover, it marks a significant step forward in resolving legal challenges for the pharmaceutical giant.
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