Johnson & Johnson agrees to $5.5 billion settlement for talc lawsuits

Johnson & Johnson announced a US$5.5 billion settlement Monday to resolve tens of thousands of lawsuits claiming its talc products caused ovarian cancer. The company stated the settlement aims to close a contentious chapter of litigation that has spanned years.

The deal covers about 69,000 cases consolidated in federal court in New Jersey, along with related state court cases, representing 99.75 percent of the remaining talc claims. Plaintiffs' law firms confirmed the agreement, calling it a favorable resolution after a decade of legal battles. However, the settlement still requires approval from the judge overseeing the federal litigation.

Erik Haas, J&J's vice president of litigation, asserted that the claims were "meritless." He explained the company's willingness to settle was driven by a desire for closure. "While we are confident the company would have ultimately prevailed with further litigation, as it has in the vast majority of cases tried to date, this resolution allows the company to put this matter behind it and remain focused on its mission to develop medicines and devices that save lives," Haas said.

This settlement follows a significant court victory for J&J last week, where a federal judge questioned the ability of individual plaintiffs to definitively prove that talc specifically caused their ovarian cancer. J&J has consistently denied any link between its talc products and cancer, maintaining that talc is safe and free of asbestos. The company transitioned to a cornstarch-based product in 2020, discontinuing talc-based baby powder sales in the U.S.

The litigation had been on hold for over three years during J&J's unsuccessful attempts to resolve the lawsuits through bankruptcy proceedings. Unlike previous proposed bankruptcy settlements, the current agreement specifically addresses existing claims and does not extend to future lawsuits.

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While we are confident the company would have ultimately prevailed with further litigation, as it has in the vast majority of cases tried to date, this resolution allows the company to put this matter behind it and remain focused on its mission to develop medicines and devices that save lives.