Johnson & Johnson to Pay Additional $1.1B in Talc Settlement
Legislation & Litigation
Written by Travis Rodgers | Edited By Amy Edel
Johnson & Johnson is adding $1.1 billion to its proposed talc settlement of $6.475 billion to resolve approximately 62,000 personal injury talc lawsuits. If given final approval, the $7.575 billion settlement would be paid over the course of more than 25 years.
The lawsuits that are part of this settlement claim asbestos-contaminated talc in J&J’s products caused the plaintiffs’ cancer. If finalized, the proposed settlement would resolve 99.75% of the company’s remaining ovarian cancer lawsuits in the U.S. However, this settlement won’t affect any of the company’s remaining mesothelioma lawsuits.
J&J says it has agreed on the deal with a lawyer representing 12,000 plaintiffs. Lawyer Allen Smith had been a holdout on the plan but now recommends his clients agree to the proposal in exchange for “additional monetary and non-monetary benefits for all talc claimants.”
Part of the proposal involves J&J creating a subsidiary to handle the claims, which will then declare bankruptcy. This move is known as a Texas two-step. Companies use this controversial strategy to settle class action lawsuits. The company plans on having a subsidiary file for bankruptcy before the end of September 2024. The company is confident a judge will approve its settlement plan.
“As the lawyer who started this litigation and tried the most cases, I feel strongly that the terms being offered to talc claimants are fair and that this is the best and most realistic option available for claimants to recover for their claims in a timely manner,” Smith said in J&J’s press release. “The opposition to this plan has no meaningful alternative proposal for getting their claimants a better recovery on any sort of realistic timeline, and therefore, any opposition should cease.”
Voting on the J&J Proposal
Thousands of plaintiffs in talc lawsuits had a deadline of July 26, 2024, to vote on J&J’s proposed bankruptcy settlement made in May 2024. For a judge to approve the proposed plan, the company needs support from at least 75% of claimants.
Unofficial results revealed soon after the deadline showed enough claimants voted in favor of the proposal. In August 2024, J&J allowed additional time to vote following a request from the plaintiffs’ lawyer.
J&J has already attempted to file bankruptcy via a subsidiary 3 times. In a recent rejection, the judge explained the company isn’t in financial distress and is, therefore not in need of filing for bankruptcy.
J&J Legal Battles and Asbestos Hazards
Though J&J maintains its talc-based products were safe, court documents in previous lawsuits show company executives were aware of asbestos contamination at talc mines as early as the 1950s. So far, J&J has paid roughly $1 billion in legal defense in talc cases.
J&J removed all talc-based products from the worldwide market in 2023. It now sells a version of baby powder containing cornstarch instead of talc.
Asbestos is a naturally occurring toxic mineral found in rock and soil. Because it’s resistant to heat, corrosion and electricity, asbestos was used in many products used in industries including construction, the military and automotives. If asbestos fibers are inhaled or ingested, they can become trapped in the body, causing inflammation that can potentially lead to cancer.
Exposure to asbestos is the primary cause of mesothelioma. The deadly mineral can also cause several other asbestos-related diseases, including asbestosis, COPD, ovarian cancer, laryngeal cancer and lung cancer. The symptoms of these diseases typically develop decades after the initial exposure.
