Johnson & Johnson, a major US pharmaceutical company, put out a $8.9 billion settlement offer on Tuesday to end long-running litigation alleging that the company’s talcum powder products contributed to cancer.
The proposed settlement, which still needs court approval, “would equitably and effectively address all claims stemming from cosmetic talc litigation,” according to the New Jersey-based corporation.
- A J&J subsidiary will re-file for Chapter 11 bankruptcy protection and ask the court to approve a plan that would lead to one of the biggest product-liability settlements in US history, according to a proposal made public on Tuesday.
- The $8.9 billion that J&J will give to the LTL Management subsidiary would be paid over the following 25 years. The sum is higher than the $2 billion reserve created by the New Brunswick, New Jersey-based corporation in October 2021.
According to the business, the new sum is supported by more than 60,000 parties who have filed claims alleging injury from J&J talcum powder.
In the lawsuits brought against J&J, it was claimed that using talcum powder for feminine hygiene led to the development of ovarian cancer or mesothelioma, a disease that affects the lungs and other organs.
The allegations led to a decline in J&J’s baby powder sales, which forced the firm to discontinue marketing its talc-based products in 2020. J&J announced intentions to stop the product’s global sales last year.
