Johnson & Johnson has agreed to pay $8.9B over the next 25 years to settle thousands of claims that its talc-based baby powder caused cancer. J&J still maintains that the claims are specious and lack scientific merit.
- J&J stopped selling its talc-based baby powder globally in 2023 following thousands of claims from customers that it caused cancer due to asbestos contamination.
- The majority of the lawsuits were filed by women who say they developed ovarian cancer after years of using either Johnson’s Baby Powder or a former J&J product, Shower to Shower.
- J&J said more than 60,000 claimants have committed to support the proposed settlement.
- In 2021, J&J spun off subsidiary LTL Management LLC to reduce its losses from litigation and settlements.
- The company assigned its talc lawsuits to the subsidiary and declared it bankrupt in an attempt at a “Texas two-step.”
- A three-judge panel in late January dismissed J&J’s petition in a landmark case that, if upheld on appeal, could deter other solvent corporations from using the bankruptcy process to manage litigation.