Johnson & Johnson Proposes $6.5 Billion Settlement to Resolve Cancer Lawsuits

Johnson & Johnson has announced a proposed settlement of $6.475 billion to address tens of thousands of lawsuits claiming that its talcum powder products, including its baby powder, were contaminated with asbestos and caused ovarian cancer. This settlement follows the discontinuation of the company’s talc-based baby powder sales in North America in 2020 and globally in 2023, shifting to a cornstarch-based product.

The settlement involves a third attempt at bankruptcy filing through a subsidiary specifically created to handle J&J’s talc liabilities. For the settlement to proceed, it requires the approval of 75% of the claimants. This process is expected to take three months, aiming to resolve both current and future ovarian cancer claims related to J&J’s talc products, which represent about 99% of the talc-related litigation against the company.

J&J has faced significant legal challenges over this issue, including a $2.12 billion verdict awarded to 22 women linking their ovarian cancer to J&J’s talcum powder. Despite these challenges, J&J maintains that its products are safe and do not contain asbestos.