Johnson & Johnson to pay $5.5bn settlement in talc cancer lawsuit
📰 source: theguardian_business · 💼 business
johnson & johnson will pay an estimated $5.5bn to resolve tens of thousands of lawsuits alleging its talc products caused ovarian cancer. the settlement covers about 76,000 claims, including those in federal court in new jersey and related state cases, representing nearly all remaining talc claims. the deal must be accepted by 95% of claimants to become final. j&j expects to pay $3bn in 2027, with further payments in 2028, but total could reach $7bn or more depending on participation. plaintiffs' lawyers called it a fair resolution after a 10-year battle. j&j's litigation vice president said the claims were meritless but settlement allows closure. the company had long denied that talc caused cancer and stopped selling talc-based baby powder in the us in 2020. the deal follows a series of court wins for j&j, including a recent federal judge ruling casting doubt on plaintiffs' ability to prove causation. however, unlike previous bankruptcy proposals, this settlement only covers existing claims and does not address future lawsuits, which made more money available to current plaintiffs and accelerates payments within 18 months.
why it matters: landmark settlement resolves decade-long legal battle, removing major uncertainty for johnson & johnson investors but leaves future claims unaddressed.
source: theguardian_business
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