Johnson & Johnson is setting aside nearly $9 billion to cover cancer charges caused by its talc-containing baby products, more than quadrupling the amount the company previously set aside to pay its potential liability. Under a proposal announced on Tuesday, a branch of NOT A WORD he will file again for Chapter 11 bankruptcy protection and seek court approval for a plan that would lead to one of the largest product liability settlements in U.S. history. The $8.9 billion that J&J would transfer to the subsidiary, LTL Management, would be payable over the next 25 years. The amount is up from the $2 billion the New Brunswick, New Jersey-based firm had set aside in October 2021.
The revised amount is backed by more than 60,000 parties who have filed lawsuits for damages caused by J&J talc, according to the company. J&J does not admit to any wrongdoing under the proposed settlement, a point company executives emphasized in a statement on Tuesday, saying the allegations “are specious and without scientific basis.” But fighting the court cases would take decades and be expensive, said Erik Haas, J&J’s worldwide vice president of litigation.
The lawsuits filed against J&J allege that talc has given users ovarian cancer, due to use for feminine hygiene, or mesothelioma, a cancer that affects the lungs and other organs. The complaints helped J&J’s talcum powder sales drop, prompting the company to stop selling its talc-based products in 2020. Last year, J&J announced plans to cease sales of the product across the world.
