JNJ Agrees To $700 Mln Settlement To Resolve Talc Consumer Protection Claims

(RTTNews) - Johnson & Johnson (JNJ) has agreed to a tentative settlement of $700 million to address certain consumer protection claims and a portion of the talc litigation it is currently facing.

Despite two unsuccessful attempts to handle the cases through bankruptcy, J&J plans to pay $700 million to 42 states and the District of Columbia to address claims regarding its talcum-based products, including Johnson's Baby Powder.

Mississippi and New Mexico have not agreed to the settlement, as they are seeking larger settlements through separate lawsuits filed against J&J. The agreement was first reported by Bloomberg two weeks ago, with the company confirming the news to the Wall Street Journal on Tuesday.

The company is still dealing with over 50,000 lawsuits related to talc, primarily from women with ovarian cancer, and fewer cases involving people with mesothelioma. According to the Lawsuit Informational Center, the company has offered $6.9 billion to resolve ovarian cancer claims. J&J is working to address the ovarian cancer and mesothelioma claims separately.

J&J is also facing legal action from shareholders who allege that the company concealed knowledge of its talc products containing cancer-causing asbestos between 2013 and 2018. Despite discontinuing the sale of talc-based baby powder in North America in 2020 and worldwide in 2023, J&J continues to assert the safety of its talc-based products.

The company stopped selling talc-based baby powder in favor of cornstarch-based products, citing an increase in lawsuits and concerns about the safety of the talc product.