Do you remember way back in 2021 when we told you about the $26 billion Johnson & Johnson agreed to pay in a settlement with states to resolve thousands of lawsuits over the country’s opioid crisis?
Well, now, it seems they figured out a way to cause cancer.
The company has agreed to pay $700 million to settle an investigation by 42 U.S. states and Washington, D.C., into its marketing of baby powder and other talc-based products that have been linked to cancer.
The settlement addresses allegations that Johnson & Johnson misled consumers into believing its talc products were safe despite selling them for over a century before discontinuing their production.
J&J did not admit wrongdoing in reaching this settlement with the states, led by Florida, North Carolina, and Texas, and maintains that its talc products are safe and do not cause cancer.
The company announced a settlement in principle in January.
“This is a major advancement for consumer product safety,” Florida Attorney General Ashley Moody said in a statement. However, J&J still faces tens of thousands of talc lawsuits, including a class action accusing the company of fraudulently concealing the dangers of its talc products from shareholders. As of March 31, about 61,490 people were still suing J&J over talc.
Most of the claimants were women with ovarian cancer, while a smaller number had mesothelioma, a cancer connected to asbestos. The company discontinued global sales of talc-based baby powder last year, transitioning to corn starch as the primary ingredient, and maintains that its products do not contain asbestos.
Despite previously attempting to settle the litigation by placing a subsidiary into bankruptcy to contain its talc liabilities, the courts rejected both efforts. On May 1, Johnson & Johnson proposed a $6.48 billion settlement to resolve most of the litigation through a third bankruptcy filing and has set aside an $11 billion reserve to cover all talc liabilities.
“The company continues to pursue several paths to achieve a comprehensive and final resolution of the talc litigation,” stated Erik Haas, J&J worldwide vice president of litigation, in a statement on Tuesday. “We will continue to address the claims of those who do not want to participate in our contemplated consensual bankruptcy resolution through litigation or settlement,” he added.
While it seems this has taken FAR longer to resolve than it should have, we’re glad these folks may finally be able to close this chapter and move on.
Sources:
https://askjoedimatteo.com/26-billion-dollars/
https://www.hbs.edu/faculty/Pages/item.aspx?num=57364
https://www.reuters.com/legal/jj-advances-6475-billion-settlement-talc-cancer-lawsuits-2024-05-01/
https://www.sec.gov/ix?doc=/Archives/edgar/data/200406/000020040624000049/jnj-20240331.htm
https://www.asbestos.com/companies/johnson-johnson/
https://www.usnews.com/news/health-news/articles/2024-06-13/j-j-settles-talcum-powder-lawsuits-from-states-for-700-million
https://www.cbsnews.com/news/johnson-johnson-baby-powder-ovarian-cancer/