The powder’s sales were halted as the company faced thousands of lawsuits alleging health risks.
Despite its proposed settlement, J&J continued to dismiss the claims.
Johnson & Johnson announced on Tuesday that it will pay $8.9 billion over the next 25 years to settle allegations that its baby powder and other talc products caused cancer.
The proposed settlement was announced in a securities filing by the company. According to the filing, J&J’s subsidiary LTL Management also re-filed for Chapter 11 bankruptcy protection after its first attempt was denied.
According to the filing, over 60,000 claimants have agreed to support the proposed resolution, which would need to be approved by the bankruptcy court.
Johnson & Johnson a $8.9 billion || جانسن اینڈ جانسن $8.9 بلین Resolving this issue through the proposed reorganization plan is more equitable and efficient, allows claimants to be compensated on time, and keeps the Company focused.” based on our promise to profoundly and positively impact human health,” said Erik Haas, J&J’s global vice president of litigation.
J&J, on the other hand, maintained its denial of the talc allegations.
“The Company believes these claims are speculative and lack scientific merit,” Haas continued.
Following thousands of lawsuits from customers who claimed their talc products caused cancer due to asbestos contamination, the company discontinued global sales of its talc-based baby powder this year.
This year, the company discontinued global sales of its talc-based baby powder after facing thousands of lawsuits from customers who claimed their talc products caused cancer due to asbestos contamination.
J&J spun off LTL management in October 2021 in an effort to reduce its litigation and settlement losses. The company transferred its talc lawsuits to the subsidiary and promptly filed for bankruptcy.
J&J’s ability to use the Chapter 11 strategy in February 2022 was confirmed by a judge.
However, the United States Court of Appeals for the Third Circuit reversed the ruling in January of this year, ruling that neither LTL nor J&J had a legitimate need for They did not qualify for bankruptcy protection because they were not in “financial distress.”
At the time, one of the lead attorneys representing plaintiffs in the talc lawsuits, Leigh O’Dell, told CNBC that the ruling was another step towards ending J&J’s “attempted abuse of the bankruptcy system.”
O’Dell told CNBC on Tuesday that J&J is “seeking an extremely deep discount on justice and is not really offering anything other than another bankruptcy and more delay, delay, delay.”
“This new filing should be viewed as a disgraceful attempt to run the clock on cancer patients and persuade some lawyers to drop their cases,” she said.
Mikal Watts, one of the plaintiff attorneys who negotiated the proposed settlement, stated that J&J has committed to “fairly compensating these deserving women” who have battled cancer as a result of the talc products. “It is our responsibility to ensure that our clients are fairly compensated for their injuries,” the attorney said.
Last month, J&J announced that it would take the case to the Supreme Court.
According to an annual filing, the company spent $7.4 billion on litigation between 2020 and 2021. According to the company, talc litigation was a major source of legal costs during those years.