Wednesday, Johnson & Johnson (JNJ) announced its plan to settle most U.S. lawsuits related to its talc-based products and ovarian cancer. The company intends to pay a whopping $6.475 billion over 25 years to settle the ovarian cancer cases, which account for 99% of all talc-related lawsuits against J&J.
Despite two previous unsuccessful efforts to resolve the lawsuits through its subsidiary’s bankruptcy, J&J is now proposing to settle the claims through a third bankruptcy filing of its subsidiary, LLT Management LLC. This move aims to address all current and future ovarian cancer claims related to talc litigation in the U.S.
To finalize the proposed settlement, 75% of claimants who allege harm from J&J’s talcum products must agree to the deal.
The proposed agreement will not only settle the ovarian cancer claims, but it will also expand J&J’s existing settlements with individuals who sued the company for developing mesothelioma, a cancer linked to asbestos exposure, as well as settlements with various U.S. states for not warning consumers about the risks of its talc products.
The company has taken a charge of approximately $2.7 billion in the first quarter to bolster its reserve for talc claims to about $11 billion, highlighting the severity of the issue at hand.
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