Johnson & Johnson announced on Wednesday a proposed $6.5 billion settlement to resolve allegations that its talc products were linked to cancer. This move marks a significant step for the pharmaceutical company in potentially putting an end to years of legal battles surrounding one of the most popular consumer goods in the United States.
The settlement offer aims to conclude a lengthy legal dispute arising from numerous lawsuits claiming that J&J's products caused women to develop ovarian cancer, with some cases resulting in fatalities.
Despite maintaining the safety of its talc products, J&J ceased the sale of talc-based items in 2020 and announced plans to discontinue global distribution of the product two years later.
The company's proposal is intended to settle 99.75% of the existing talc lawsuits in the U.S. Legal actions not covered by the settlement pertain to mesothelioma, a rare cancer affecting the lungs and other organs, which the company plans to address separately.
"The strategy we have put in place is the result of our collaborative efforts that we initiated last October," stated Erik Haas, who serves as the global vice president of litigation at J&J, on Wednesday. "Since then, the Company has been working closely with legal representatives of the majority of talc claimants to bring this legal battle to a conclusion, which we anticipate achieving through this plan."
Johnson & Johnson presented a settlement proposal as part of a subsidiary, LLT Management's, bankruptcy reorganization plan, offering ovarian claimants a three-month window to vote on the plan.
The plaintiffs' lawyers have rejected the settlement proposal, stating that it "would deprive victims who have genuinely suffered due to talc exposure."
"We firmly believe that any bankruptcy proceeding resulting from this solicitation and vote will be deemed fraudulent and in violation of the Bankruptcy Code," mentioned Andy Birchfield, who leads the Mass Torts Section at the Beasley Allen Law Firm, in a statement to CBS MoneyWatch. "In the best interest of our clients who deserve justice, we are calling out this manipulative legal maneuver and will oppose it at every juncture."
