Johnson & Johnson offers $5.5 billion to end talc litigation

• Johnson & Johnson offered $5.5 billion to settle about 76,000 lawsuits alleging its talc products caused ovarian cancer.
• The proposed agreement requires participation from at least 95% of the remaining claimants before it can proceed.
• Johnson & Johnson continues to deny that its talc products caused cancer, but said the settlement would end years of litigation.

Johnson & Johnson (NYSE:JNJ) offered $5.5 billion to settle about 76,000 lawsuits alleging its baby powder and other talc products caused ovarian cancer.

The proposed agreement covers nearly all remaining talc claims, including cases consolidated in New Jersey federal court and related proceedings in state courts.

“While we are confident the Company would have ultimately prevailed with further litigation, this resolution allows the Company to put this matter behind it,” said Johnson & Johnson Vice President of Litigation Erik Haas.

The settlement requires express participation from at least 95% of the remaining claimants, while Johnson & Johnson continues to deny that its talc-based products caused cancer.

The company said the agreement would allow it to focus on its medicines and medical devices, and following the announcement the Johnson & Johnson share price was not disclosed.

Johnson & Johnson stopped selling talc-based baby powder in the United States and Canada in 2020 and has previously resolved most claims involving alleged asbestos contamination and mesothelioma.

The company also faces a separate United Kingdom lawsuit involving about 3,000 claimants seeking more than £1 billion over alleged ovarian cancer and mesothelioma injuries.