207 Johnson & Johnson (JNJ.N) is on the brink of securing widespread approval for a $6.48 billion settlement offer aimed at resolving tens of thousands of legal claims alleging that its Baby Powder and other talc products caused cancer. According to sources familiar with the matter, the healthcare giant is expected to announce in the coming days that more than 75% of claimants have voted in favor of the proposed settlement, a crucial threshold required for judicial approval. The anticipated support for the settlement could pave the way for Johnson & Johnson to initiate a strategic bankruptcy filing through a subsidiary as soon as next week. This filing is part of the company’s effort to resolve current and future lawsuits related to its talc products under a single, consolidated settlement. The deadline for claimants to cast their votes on the settlement was July 26, and J&J has been reviewing the votes, with expectations that the necessary backing will be secured. A J&J spokesperson commented, “We cannot provide further details until the vote is officially certified.” However, the company remains confident that the settlement will move forward, allowing it to present the proposal to a bankruptcy judge for final approval. The settlement represents J&J’s latest attempt to address the ongoing litigation surrounding its talc products. The company currently faces lawsuits from over 62,000 plaintiffs, with estimates rising to as many as 100,000 when including claimants who have yet to file formal lawsuits. Despite the overwhelming number of claims, J&J has consistently maintained that its talc products are safe and do not cause cancer. The proposed settlement is part of J&J’s renewed effort to resolve the talc litigation using a legal strategy known as the “Texas two-step” bankruptcy. This maneuver involves creating a new subsidiary to absorb the talc-related liabilities, which would then file for Chapter 11 bankruptcy protection. The goal is to consolidate all claims into one settlement, without requiring J&J itself to declare bankruptcy. This strategy has faced significant opposition and legal challenges. In the past, federal courts have rejected J&J’s attempts to use the Texas two-step strategy, ruling that the subsidiary lacked the necessary “financial distress” required for Chapter 11 protection. However, J&J plans to file the latest bankruptcy case in Texas, where it hopes to receive a more favorable ruling regarding the financial-distress standard. Unlike previous attempts, the current settlement offer specifically addresses claims related to ovarian and other gynecological cancers, which comprise the majority of the lawsuits. It excludes claims involving mesothelioma, a rare and deadly cancer linked to asbestos exposure, which some plaintiffs allege was present in J&J’s talc products. J&J has repeatedly asserted that its talc does not contain asbestos and has already settled nearly all mesothelioma cases outside of bankruptcy court. Another key difference in J&J’s current approach is the decision to solicit settlement votes from claimants before filing for bankruptcy. In previous cases, the company sought votes after the bankruptcy filing, which contributed to the rejection of its earlier plans. By securing claimant support in advance, J&J aims to streamline the approval process and minimize opposition. J&J’s motivation for pursuing bankruptcy proceedings lies in the ability of bankruptcy judges to enforce global settlements that halt all related lawsuits and prevent new claims from being filed. This approach contrasts with the traditional trial-court system, where settlements could still leave room for holdout plaintiffs or future lawsuits, exposing the company to further legal risks and potential multibillion-dollar verdicts. Despite its legal challenges, J&J has had a mixed track record in court. While it has won the majority of cases that have gone to trial, the company has also faced significant losses, including a $2.1 billion verdict in Missouri related to ovarian cancer claims. The risk of similar verdicts has driven J&J to explore the Texas two-step strategy as a means of bringing the talc litigation to a close. As Johnson & Johnson moves closer to finalizing this settlement, the outcome will have significant implications for both the company and the thousands of individuals who have claimed that its talc products caused their illnesses. With the settlement process expected to advance in the coming weeks, the legal battle over J&J’s talc products may soon reach a critical turning point. 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