Johnson & Johnson, the largest producer of healthcare products globally, has officially confirmed that it has reached a tentative agreement to address claims related to its talc-based baby powder in more than 40 states.
This development was announced on Tuesday, marking a significant step in the ongoing discussions surrounding J&J's baby powder.
J&J's Baby Powder: Healthcare Giant Confirms $700 Million Settlement
Healthcare giant Johnson & Johnson has confirmed its intention to pay $700 million (£552 million) in a settlement, which had been previously reported. This settlement is part of a much larger effort by the company to address concerns about the safety of its products.
Johnson & Johnson maintains that their talc-based baby powder products are safe for consumers.
However, they are currently facing over 50,000 lawsuits from individuals who claim that using the product led to cancer, with some alleging the presence of cancer-causing asbestos.
The company established a subsidiary to handle and resolve these claims in bankruptcy court. Last year, Johnson & Johnson proposed a substantial $9 billion settlement, asserting that the claims were unfounded but expressing a desire to move forward from the issue.
As revealed last week, significant progress has been made in Johnson & Johnson's efforts to settle talc-related claims. The company has reached a preliminary agreement with a group of 43 State Attorneys General to address these claims.
Erik Haas, J&J's global vice president of litigation, emphasized that the company remains committed to addressing the concerns of individuals who may choose not to participate in the proposed bankruptcy resolution, whether through legal action or a settlement.
Nevertheless, judges intervened, ruling that the subsidiary was not in financial distress and could not utilize the bankruptcy system to address the lawsuits.
State officials have refrained from commenting on the tentative agreement at this time.
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J&J's Previous $8.9 Billion Bankruptcy Proposal Falls Through
In its most recent attempt at bankruptcy resolution, Johnson & Johnson had put forward a $8.9 billion offer to settle claims related to its talc products. Last year, the company had also indicated plans for a third bankruptcy filing.
The settlement reached with the states might facilitate this process, as some states had previously argued that, unlike private plaintiffs, they could continue pursuing their claims while a bankruptcy case is ongoing. This issue remains unresolved in the courts.
Trials involving talc-related cases have seen varying outcomes, with significant victories for plaintiffs, such as a $2.1 billion judgment in 2020 awarded to 22 women who developed ovarian cancer.
In a notable development, a New Jersey appeals court overturned a $223.8 million verdict against the company in October, casting doubts on the credibility of the expert witnesses presented by the plaintiffs.
As a response to the increasing number of lawsuits and concerns about the safety of talc-based products, the company has ceased selling talc-based baby powder in favor of cornstarch-based alternatives, citing both legal challenges and what it perceives as "misinformation" regarding the safety of talc-based products.
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