Big Settlement in Talcum Powder Cancer Lawsuits with $6.5 Billion

by | Jun 6, 2024 | Talcum Powder Lawsuit

J&J Moves to Settle Talc Cancer Lawsuits with $6.5 Billion Deal

The Johnson & Johnson Group has submitted a new offer to settle lawsuits related to ovarian cancer. These offers arise from litigation over the use of its talcum powder against the company and its subsidiaries in the U.S. The reorganization proposal has been submitted by its subsidiary, LLT Management, which filed for bankruptcy. With this, it undertakes to pay the plaintiffs in 25 years a current value of approximately 6,475 million dollars. It is the company’s third attempt to resolve ovarian cancer lawsuits through its subsidiary’s bankruptcy proceedings.

Lawsuits were filed against the company, alleging that its talc caused ovarian cancer in its users. Mesothelioma is a cancer that affects the lungs and other organs and is related to exposure to asbestos. The company has received around 50,000 lawsuits.

The complaints contributed to declining sales of Johnson & Johnson’s baby powder. This led the company to stop selling its talc-based products in 2020 in the United States and Canada. In 2022, it announced that it would be removing them from the market everywhere. However, the company has defended that its product was safe and that the talcum powder cancer lawsuits were unfounded.

Johnson & Johnson notes that the new offer will allow for compensation “far better than what plaintiffs can achieve at trial.” He assures that the majority of the plaintiffs “have not and will not recover anything” through a trial – said a company spokesperson

The company says it has won about 95% of the talcum powder cancer cases tried to date. “Furthermore, given the historical pace, it would take decades to litigate the remaining cases and, therefore, most plaintiffs will never have their day in court,” he adds.

Despite this, the company has also suffered some significant defeats. In 2017, a Los Angeles court sentenced the pharmaceutical company to pay $417 million. This was due to considering her responsible for the terminal ovarian cancer diagnosed in a 63-year-old woman.

The new proposal would raise the total payment for all cases to about $11 billion in current value (13.7 billion payable over 25 years), which is an increase of about $2.7 billion over the previous offer.

Removed from shelves

The New Brunswick, New Jersey-based company recalled its talcum-based powders in the U.S. and Canada in 2020, citing declining sales. The world’s largest manufacturer of health products replaced talc with a version based on corn starch. J&J has pledged to recall all of its baby powder worldwide by the end of this year.

J&J faced a series of jury trials earlier this year over allegations that its executives. They had known since the early 1970s that talcum powder contained traces of asbestos but had not alerted consumers or regulators. J&J maintains that its talc-based products do not cause cancer and that its marketing method has been appropriate for more than 100 years.

J&J offered nearly $9 billion to resolve all talc litigation, but the plaintiffs rejected it. An appeals court found that J&J abused the bankruptcy process to encourage a settlement.

Two Proposals Rejected

The courts rejected Johnson & Johnson’s two previous proposals because the company had decided to have a subsidiary assume all responsibility. It would declare bankruptcy to prevent the group as a whole from being affected. The judges rejected the bankruptcy request because the subsidiaries did not have financial problems but saw it as a maneuver.

The difference this time is that the plaintiffs will have a prior vote. To move forward, 75% of applicants need to approve it within three months. If successful, the subsidiary can present that pre-bankruptcy agreement to process the bankruptcy.

If an agreement is reached, 99.75% of the pending talcum powder cancer lawsuits against the company and its subsidiaries in the United States will be resolved. Pending mesothelioma personal injury lawsuits will be addressed outside of the plan. According to the statement, the company has already resolved 95% of the talcum powder lawsuits filed to date.

Talcum Powder Lawsuit Updates: Recent News

In May 2024, a study published in the Journal of Clinical Oncology found a link between the use of talcum powder on the genitals and ovarian cancer. Additionally, in May 2024, J&J announced a $6.5 billion settlement over 25 years to resolve most of the outstanding ovarian talcum powder cancer lawsuits. However, this settlement does not cover claims related to mesothelioma caused by J&J products. In January 2024, J&J agreed to pay over $700 million to settle an investigation by more than 40 states regarding the marketing of talcum powder products. This settlement will resolve all current and pending state-level lawsuits accusing J&J of concealing the cancer risk associated with talcum powder products. It’s important to note that this settlement does not impact the more than 50,000 cases consolidated into the federal MDL.

Who is eligible to file a talcum powder lawsuit?

If you have used products containing talc and have developed ovarian cancer or mesothelioma, you may be eligible to file a talc lawsuit.

For ovarian cancer lawsuits, women must have used talc-containing products near the area of the cancer on a daily basis for four or more years before being diagnosed with ovarian cancer. The diagnosis must have occurred after the year 2000 and between the ages of 22 and 65.

In mesothelioma talc cancer lawsuits, the talc products used may include cosmetic items like baby powder or exposure to industrial-grade talc found in clay, paper, paint, ceramics, adhesive materials, crayons, supplements, and more.

It’s important to note that cornstarch-based baby powders do not contain talc, so users of these products are not eligible for a talc cancer lawsuit.

As with all lawsuits linking a health condition to a product or manufacturer’s liability, plaintiffs must obtain a precise diagnosis of their health condition from a licensed healthcare professional. Evidence connecting the cause of the health problem to the talc-containing products used is critical during the discovery phase of litigation.

We can help you with your case.

Baby powder cancer lawsuits are being filed daily by victims or their families who have suffered from this type of injury.

We understand the high cancer treatment costs, and we can help alleviate them by seeking appropriate compensation. On the other hand, the loss of a loved one is of incalculable value, but at least we can help you obtain justice and perhaps closure.

At People For Law, we care about our clients and work together professionally and ethically. You have the best legal team specialized in mass torts.Contact us, and we will give you a free consultation to study your case. At People For Law, we provide solutions to your problems.