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Johnson & Johnson proposes $5.5 billion talc settlement to end marathon legal fight
The Johnson & Johnson headquarters is in New Brunswick, New Jersey, on Thursday, Feb. 8, 2024. (AP Photo/Ted Shaffrey, File)
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Johnson & Johnson has agreed to pay $5.5 billion to tie up remaining lawsuits that claim its talc products caused ovarian cancer.
The drugmaker, which has been fighting talc-related lawsuits for more than a decade, said that the settlement is conditioned on at least 95% of remaining claimants participating.
A U.S. bankruptcy court judge denied a $9 billion settlement proposed by company subsidiary Red River Talc last year that would have been one of the biggest mass tort settlements in history.
Johnson & Johnson decided not to appeal that ruling and instead fight on in court.
A federal judge last week ordered plaintiffs in the case against Johnson & Johnson to show why the remaining pending talc claims should not be dismissed after their witnesses could not provide a direct link between the company’s product and cancer.
“The Court’s order placed plaintiffs in an untenable position of having to present specific causation evidence to maintain their claims that does not exist,” Erik Haas, worldwide vice president of litigation, Johnson & Johnson, said in a prepared statement Monday.
As part of the settlement proposed this week, Johnson & Johnson will make an initial payment of no more than $3 billion next year. It has no additional payments due until 2028.
“While we are confident the company would have ultimately prevailed with further litigation, as it has in the vast majority of cases tried to date, this resolution allows the company to put this matter behind it and remain focused on its mission to develop medicines and devices that save lives,” Haas said.
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Johnson & Johnson said that it previously settled about 95% of filed lawsuits for mesothelioma, a cancer in the tissue surrounding organs like the lungs and heart, all state consumer protection claims, and all talc-supplier disputes.
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Shares of the New Brunswick, New Jersey-based company rose more than 2% before the market open on Tuesday.
Read Original at AP News →