NEW YORK — Johnson & Johnson has offered to pay up to $5.5 billion to settle lawsuits alleging its talc products caused ovarian cancer, a move designed to resolve the bulk of outstanding claims and compensate plaintiffs.
The proposed settlement uses a voluntary opt-in structure for plaintiffs with ovarian cancer claims. A significant percentage of plaintiffs must accept the terms for the agreement to take effect.
J&J has faced litigation for years over its talc-based powders, including Johnson's Baby Powder and Shower to Shower. Plaintiffs alleged the products contained asbestos and caused cancer.
J&J has maintained its products are safe and do not contain asbestos, saying its talc is pure and does not cause cancer.
The offer follows two failed attempts to resolve the litigation through a subsidiary bankruptcy filing. The Third Circuit Court of Appeals rejected that strategy twice.
J&J subsidiary LTL Management filed for bankruptcy in 2021 and again in 2023 to manage the talc liabilities. Both filings were dismissed by the appeals court, forcing J&J to pursue an alternative resolution.
The current offer covers an estimated 60,000 pending ovarian cancer claims. J&J recorded a $4.5 billion litigation expense in recent quarters related to talc liabilities, before this new settlement figure.
If enough plaintiffs opt in, the settlement would remove a significant legal overhang from J&J's financial outlook. Funds would be disbursed through a trust to eligible claimants over an extended period.
J&J carved out its consumer health business, Kenvue, in 2023, a separation aimed at shielding its pharmaceutical and medical device segments from the talc liabilities.
Final court approval and the plaintiff opt-in rate are the remaining hurdles. The process could take months, with specific deadlines for claimants to participate.
