Johnson & Johnson Negotiates $6.48 Billion Talc Settlement Amid Legal Challenges

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Johnson & Johnson Negotiates $6.48 Billion Talc Settlement Amid Legal Challenges

Johnson & Johnson (J&J) has announced that it is in negotiations with attorneys representing plaintiffs who oppose the company’s proposed $6.48 billion global settlement related to allegations that its baby powder and other talc products caused cancer. The company is working to address objections and secure agreement from all claimants to finalize the settlement, which involves a bankruptcy plan for a subsidiary company.

The proposed settlement, aimed at resolving a multitude of lawsuits, has faced hurdles, including rejections from federal courts in previous attempts. J&J plans to resolve all pending talc-related lawsuits and prevent future claims through the bankruptcy of a subsidiary, contingent on receiving support from at least 75% of the talc claimants.

Erik Haas, J&J’s Worldwide Vice President of Litigation, confirmed the company’s commitment to reaching a comprehensive resolution. “We have agreed to a short extension of the certification timeline,” Haas said. “This extension will allow additional time for plaintiffs’ attorneys to discuss the settlement proposal with their clients and potentially gain their support.”

Despite this, opposition remains, particularly from Andy Birchfield, a lawyer leading the resistance against J&J’s settlement. Birchfield expressed a willingness to negotiate but remains prepared to contest any further bankruptcy filings by the company. “Our ultimate goal is to secure fair and timely compensation for ovarian cancer victims,” Birchfield stated. “If J&J is showing a willingness to negotiate, we view this positively. However, if the company proceeds with another Chapter 11 filing, we will vigorously oppose it.”

The bankruptcy plan proposed by J&J would address claims related to ovarian and other gynecological cancers, building on a prior settlement outside of bankruptcy that resolved lawsuits related to mesothelioma, a cancer associated with asbestos exposure. J&J aims to consolidate all claims into one global settlement through this bankruptcy process, which would provide a comprehensive resolution and prevent new lawsuits.

The company faces over 62,000 lawsuits from plaintiffs who allege that its talc products were contaminated with asbestos and led to various forms of cancer. J&J maintains that its products are safe, free from asbestos, and do not cause cancer. The proposed settlement represents an effort to resolve these disputes without further litigation, while avoiding the potential for large verdicts that could arise from ongoing lawsuits.

If approved, the settlement would provide compensation to those affected while also shielding J&J from future legal challenges related to its talc products. Bankruptcy judges have the authority to enforce such global settlements, which can halt all related lawsuits and prevent new ones from being filed. This approach allows J&J to avoid a broader bankruptcy filing while seeking to resolve the litigation through the subsidiary’s bankruptcy process.

J&J has successfully defended itself in many of the ovarian cancer cases tried to date, but the litigation has resulted in significant verdicts, including a notable $2.12 billion award in a case involving 22 women who claimed their ovarian cancer was caused by asbestos in J&J’s talc.