Johnson & Johnson announced on Wednesday that it has made a $6.5 billion settlement offer to address the claims that its talc products may have caused cancer. This move marks a significant milestone for the pharmaceutical giant as it seeks to resolve the long-standing legal battles surrounding its once-popular consumer products in the United States.
J&J is facing a long-standing legal battle due to numerous lawsuits accusing the company of selling products that allegedly caused women to develop ovarian cancer, leading to some fatalities. The proposal seeks to resolve this ongoing litigation.
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J&J affirms the safety of its talc products. However, in 2020, the company discontinued the sale of talc-based items, and two years later, it revealed its intention to halt the global sales of this product.
The company announced that the proposed settlement would resolve 99.75% of the talc lawsuits currently pending in the United States. It is important to note that the proposal does not cover the legal actions pertaining to mesothelioma, a rare form of cancer that impacts the lungs and other organs. The company has stated its intention to handle those specific lawsuits separately from the proposed settlement.
“The Plan represents the final stage of our collaborative approach to resolving the talc claims, as we had previously announced in October,” stated Erik Haas, the worldwide vice president of litigation at J&J. He further added, “Since then, we have been actively working alongside the legal counsel representing a majority of talc claimants to reach a resolution, and we anticipate achieving that through this plan.”
Johnson & Johnson has put forth a settlement offer in the midst of a bankruptcy reorganization plan for its subsidiary, LLT Management. The company aims to provide ovarian claimants with a three-month window to vote on whether they accept or reject the proposed plan.
Some plaintiffs’ attorneys rejected the settlement offer, arguing that it would unfairly disadvantage victims who have suffered genuine harm from talc.
“We are confident that any bankruptcy proceeding initiated as a result of this solicitation and vote will be deemed fraudulent and filed in bad faith under the Bankruptcy Code,” stated Andy Birchfield, who leads the Mass Torts Section at the Beasley Allen Law Firm. “In order to advocate for our clients who deserve better, we are exposing this manipulative legal strategy and will vigorously oppose it.”
