J&J agrees to pay $8.9 billion to settle claims related to its talcum powder products
Johnson & Johnson announced Tuesday, April 4 that it will pay $8.9 billion over the next 25 years to settle claims that its baby talcum powder and other talc products cause cancer.
The company indicated in a disclosure to the Securities Commission that its subsidiary, LTL Management, had applied for bankruptcy protection after the first attempt was thwarted.
The company’s vice president of litigation stated that resolving the issue through the proposed reorganization plan is more fair and effective.
He stressed that this solution allows for timely compensation to the plaintiffs and enables the company to continue to focus on its commitment to profoundly impact health and humanity.
Although Johnson & Johnson agreed to pay the damages, it indicated that it still believes those claims are flimsy and lack scientific merit.
The company ended sales of its talcum powder globally this year, after it faced thousands of lawsuits from customers alleging that its talcum powder products cause cancer.
Johnson & Johnson paid $7.4 billion in litigation costs between 2002 and 2021.
