Johnson & Johnson offers $5.5bn to settle US cancer lawsuits over talcum powder
Medical giant Johnson & Johnson has offered to pay up to $5.5billion to resolve tens of thousands of lawsuits in the US that claim its talcum powder causes ovarian cancer.
The New-Jersey-based company, well-known for its baby powder, has proposed the settlement, which is the equivalent to £4.14billion, in an attempt to turn the page on the long-running legal battle in the US.
It comes ahead of a potential trial in the UK in 2028.
The business described the claims as ’meritless’ and denied its talcum-based products caused cancer.
It changed the formula of its baby powder from talcum to cornstarch in the US in 2020 and then globally in 2023.
The settlement covers around 76,000 claims. It will see around £2.26billion paid out in 2027 and further payments in 2028.
But lawyers representing those fighting against Johnson and Johnson believe more could ultimately be paid out as the settlement is uncapped.
Chris Seeger, one of the lawyers representing claimants in the case, said the amount could reach a total of £5.26billion.
J&J’s vice president of litigation, Erik Haas, said the settlement means the company can move on.
He said: ’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.’
The company added: ’Studies show talc is safe, does not contain asbestos and does not cause cancer.’
Lawyer Seeger said this update means his clients will ’receive fair and meaningful compensation.’
’More than a decade of protracted litigation and three failed bankruptcies has left tens of thousands of women and their families waiting far too long for relief,’ he added.
For the proposal to be finalised, legal firms representing 95 per cent of the claims in US courts must accept.
Johnson & Johnson previously attempted a strategy of filing bankruptcies through a shell-company subsidiary in order to settle the cases – but these bankruptcies were dismissed.
Technology & Business Editor
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