Johnson & Johnson Proposes $5.5 Billion Talc Settlement to Resolve U.S. Ovarian Cancer Lawsuits

Johnson & Johnson (NYSE: JNJ) has proposed a $5.5 billion settlement aimed at resolving the vast majority of its remaining U.S. lawsuits alleging that its talc-based products caused ovarian cancer. The healthcare giant said the agreement will move forward if at least 95% of eligible claimants agree to the terms.

The proposed settlement covers approximately 76,000 ovarian cancer claims currently pending in federal multidistrict litigation and related state court proceedings. According to Johnson & Johnson, the deal would bring an efficient end to more than 15 years of legal disputes surrounding its talc products while reducing the financial and operational uncertainty of continued litigation.

The announcement follows a recent ruling by the federal multidistrict litigation court, which questioned whether plaintiffs could establish that Johnson & Johnson’s talc products directly caused individual cases of ovarian cancer. The company noted that plaintiffs withdrew their specific causation experts in two bellwether trials before the court required them to explain why the remaining claims should not be dismissed.

Under the proposed agreement, Johnson & Johnson expects to make an initial payment of up to $3 billion in 2027, with no additional payments scheduled before 2028. The company emphasized that while it remains confident it could have successfully defended the claims in court, reaching a settlement offers a more practical path by avoiding years of additional legal costs and uncertainty.

Johnson & Johnson continues to maintain that extensive scientific research supports the safety of its cosmetic talc products. The company has consistently stated that its talc never contained asbestos and does not cause cancer, despite the allegations raised in the lawsuits.

The company discontinued the global sale of talc-based Johnson’s Baby Powder in 2023. Following the separation of its consumer health business into Kenvue, Johnson & Johnson retained responsibility for all talc-related legal liabilities. Investors will closely monitor whether enough claimants approve the proposal, as the settlement could significantly reduce one of the company’s largest long-running legal challenges.