Johnson & Johnson to pay $5.5 billion to settle baby powder cancer lawsuits
Proposed settlement covers around 76,000 claims alleging talc-based products caused ovarian cancer; company continues to deny wrongdoing
One of the largest and longest-running product liability cases in corporate history may be resolved, as Johnson & Johnson (J&J) has agreed to pay roughly USD 5.5 billion (Rs 52,700 crore) to settle tens of thousands of lawsuits alleging that its baby powder and other talc-based products caused ovarian cancer.
The majority of the remaining ovarian cancer cases against the healthcare conglomerate are included in the proposed settlement, which encompasses roughly 76,000 claims that have been filed in federal and state courts across the United States.
The agreement will become effective only if no less than 95 percent of the claimants accept the deal.
After more than ten years of courtroom hearings, appeals, and even three failed bankruptcy bids by the company to settle the claims, the deal represents a significant turning point in the legal war.
Johnson & Johnson has frequently denied that its talc-based products cause ovarian cancer and has claimed that they are harmless and do not contain asbestos.
The corporation asserts that it is settling because it wants to put the final years of expensive litigation behind it, not because it believes the claims have substance.
Erik Haas, J&J’s Vice President of Litigation, said this resolution enables the firm to move past this issue and continue concentrating on its goal of creating life-saving medications and devices, even though we are certain that the company would have ultimately succeeded with additional litigation, as it has in the great majority of cases tried to date.
The remaining payments are planned for 2028, and the company expects to pay about USD 3 billion in 2027. However, the ultimate settlement sum is not set.
