Johnson & Johnson announced Monday it will pay $5.5 billion to settle approximately 76,000 lawsuits alleging its talc-based baby powder caused ovarian cancer, potentially bringing an end to one of the pharmaceutical giant’s most protracted legal battles.
The settlement comes after 15 years of litigation over the company’s iconic baby powder product, though Johnson & Johnson continues to maintain the claims are “meritless” and that scientific evidence supports the product’s safety.
“Studies show talc is safe, does not contain asbestos and does not cause cancer,” the company stated in its announcement, echoing its long-standing position throughout the legal saga.
Recent Court Decision Preceded Settlement
The agreement follows a federal court ruling on July 22 that found most claimants could not effectively establish a link between Johnson & Johnson’s baby powder and their ovarian cancer diagnoses. This decision appeared to strengthen the company’s legal position before it opted to settle.
Erik Haas, Johnson & Johnson’s Worldwide Vice President of Litigation, referenced the court’s findings in explaining the settlement decision. The court “confirmed what we have maintained for years: that these claims lack scientific merit and were sustained only by unreliable expert opinions that could not survive rigorous judicial review,” Haas said in a statement.
“While we are confident the Company would have ultimately prevailed with further litigation,” Haas continued, “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.”
Total Payout Could Exceed Initial Figure
While the announced settlement stands at $5.5 billion, the actual payout could climb significantly higher. Chris Seeger, an attorney representing approximately 2,500 plaintiffs with talc claims, told Fox News that he helped negotiate the settlement and revealed it does not impose a cap on total payments. Instead, the agreement assigns specific values to qualifying ovarian cancer claims.
According to Seeger, Johnson & Johnson could end up paying $7 billion or more under the settlement’s structure. “We got a fair settlement, and our clients are going to be happy with it,” Seeger told Reuters.
Payment Structure and Approval Requirements
Johnson & Johnson has outlined a staggered payment schedule for the settlement, planning to distribute $3 billion of the $5.5 billion in 2027, with the remainder to be paid in 2028 or later. However, the settlement is not yet final — it requires acceptance from 95% of claimants before taking effect.
This represents the company’s latest attempt to resolve the talc litigation after previous strategies failed. Johnson & Johnson had previously tried using shell-company subsidiaries to declare bankruptcy as a mechanism for settling the cancer cases, but courts rejected that approach.
Distinction From Earlier Asbestos Settlements
The ovarian cancer settlement marks a significant shift in Johnson & Johnson’s approach to talc litigation. While the company had previously settled lawsuits alleging its baby powder contained asbestos and caused mesothelioma, it had resisted settling the ovarian cancer claims until now.
The distinction between the two types of claims has been central to the legal battles, with questions about both the presence of asbestos in the talc and whether talc itself could cause ovarian cancer when used for feminine hygiene.
Product Reformulation
Johnson & Johnson discontinued its talc-based baby powder formula in 2020, switching to a cornstarch-based alternative. The reformulation came amid mounting legal pressure and public concern, though the company did not acknowledge any safety issues with the original talc-based product at the time of the change.
The settlement, if approved by the required percentage of claimants, would represent one of the largest product liability settlements in recent corporate history and would close a chapter on a controversy that has shadowed the company for over a decade.
Source: www.dailywire.com — https://www.dailywire.com/news/baby-powder-cancer-saga-poised-to-end-with-massive-payout