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Johnson & Johnson offered $8.9 billion to settle years-old lawsuits claiming that its talcum powder products caused cancer.
The New Jersey-based pharmaceutical giant described their proposal, which still needs a bankruptcy court’s approval, as an equitable and efficient resolution to all claims arising from cosmetic talc litigation.
If approved by the bankruptcy court and a majority of the claimants, the $8.9 billion deal would rank alongside those reached by cigarette corporations and opioid producers as one of the largest product liability settlements ever in the US
Thousands of claims have been filed against J&J because of talcum powder that may have contained traces of asbestos and was linked to ovarian cancer.
The company has never acknowledged wrongdoing, but as of May 2020, it no longer sells its talc-based baby powder in the US and Canada.
The $8.9 billion would be paid to the tens of thousands of claimants over 25 years through a J&J subsidiary, LTL Management LLC, which was set up to address the claims and has filed for bankruptcy protection.
A previous settlement involving LTL was rejected by an appellate court.
