Johnson & Johnson has proposed a $6.475 billion settlement offer for tens of thousands of lawsuits that allege the company's talc-based baby powder caused ovarian cancer.
Johnson & Johnson stopped selling talc-based baby powder in the United States in 2020, globally last year, in the wake of what it called "misinformation" about the product's safety amid a barrage of legal challenges -- more than 50,000 lawsuits, to be exact.
This followed a voluntary recall after an investigation by the Food and Drug Administration found trace amounts of asbestos in the product. After the discovery, thousands of lawsuits claimed that the talc-based baby powder caused cancer due to it being contaminated with asbestos.
Under the proposed settlement, J&J would pay claimants a present value of approximately $6.475 billion over 25 years. The company said the deal would resolve 99.75% of pending talc lawsuits and provide "a far better recovery than the claimants stand to recover at trial."
"Most ovarian claimants have not recovered and will not recover anything at trial. Indeed, the company has prevailed in approximately 95% of ovarian cases tried to date, including every ovarian case tried over the last six years," the company said in a statement. "In addition, based upon the historical run rate, it would take decades to litigate the remaining cases, and therefore, most claimants will never have 'their day in court.'"
Those who have filed lawsuits have three months to vote for or against the settlement plan. If 75% of claimants vote in favor, the deal will be approved.
Despite offering the settlement, J&J stands by the safety of its talc products and maintains that none of the talc-related claims against it have any merit.
"The talc claims asserted against the company exemplify the egregious impact on U.S. businesses from meritless litigation and extreme judgments obtained by the plaintiffs' bar through forum shopping, the distortion of scientific literature with junk science, and the unregulated and surreptitious financing of product litigation by financial institutions, including private equity and sovereign wealth funds," Erik Haas, J&J's worldwide vice president of litigation, said in a statement.
The remaining lawsuits relate to mesothelioma and will be addressed outside of the plan, J&J added, noting that it has resolved 95% of mesothelioma lawsuits filed to date.