NEW BRUNSWICK, N.J. — Johnson & Johnson has agreed to pay $8.9 billion to thousands of people who claimed the company’s talcum powder products cause cancer, the company said Tuesday.
According to a news release, a subsidiary of the company, LTL Management, will refile for Chapter 11 bankruptcy protection and seek a court’s approval to settle the lawsuit.
Johnson & Johnson created LTL in order to protect itself from litigation, but an earlier filing was challenged by plaintiffs and was dismissed by a U.S. appeals court, The New York Times reported.
Breaking News: Johnson & Johnson agreed to pay $8.9 billion to settle claims that its talc products caused cancer, potentially ending a yearslong legal fight.https://t.co/0dVQNvenme
— The New York Times (@nytimes) April 4, 2023
Under the new bankruptcy request, Johnson & Johnson sought to make payments over 25 years, The Wall Street Journal reported.
According to the news release, the filing is not an admission of wrongdoing. Johnson & Johnson continues to claim that the talcum powder products are safe, ABC News reported.
The Chapter 11 case was filed in the U.S. Bankruptcy Court for the District of New Jersey, according to the news release.
Without a court-approved settlement, Johnson & Johnson could have been defending itself against lawsuits spread across the U.S., a process that could have taken many years, according to The Wall Street Journal.
“The company continues to believe that these claims are specious and lack scientific merit,” Erik Haas, Johnson & Johnson’s worldwide vice president of litigation, said in a statement. “However, as the bankruptcy court recognized, resolving these cases in the tort system would take decades and impose significant costs on LTL and the system, with most claimants never receiving any compensation.
“Resolving this matter through the proposed reorganization plan is both more equitable and more efficient, allows claimants to be compensated in a timely manner, and enables the company to remain focused on our commitment to profoundly and positively impact health for humanity.”
Many of the lawsuits filed against Johnson & Johnson claimed that the talcum powder used in the company’s baby powder was contaminated with asbestos, the Times reported. Plaintiffs claimed the powder led to illnesses such as ovarian cancer and mesothelioma.
Johnson & Johnson’s stock rose 3% in after-hours trading Tuesday after the announcement, according to The Associated Press.
