Photo Credit: Tada Images/Shutterstock
Johnson & Johnson (JNJ.N) announced on Wednesday its progression towards finalizing a $6.48 billion settlement concerning numerous lawsuits alleging that its talc-based products, including baby powder, contain asbestos and lead to ovarian cancer. The proposed settlement, facilitated through the bankruptcy proceedings of a subsidiary, aims to address tens of thousands of pending and potential claims.
This arrangement initiates a three-month period for voting among stakeholders, seeking consensus on the resolution of existing and future ovarian cancer litigation, which comprises the vast majority of talc-related lawsuits against Johnson & Johnson. Previously, attempts to resolve these claims through subsidiary bankruptcies were rejected by courts on the grounds that the company did not meet the criteria for bankruptcy protection due to lack of financial distress.
Johnson & Johnson maintains its stance that its talc products are asbestos-free and do not cause cancer. The proposed settlement enjoys support from a significant portion of plaintiffs’ attorneys representing individuals involved in cancer-related lawsuits against the company.
Erik Haas, J&J’s global vice president of litigation, emphasized the importance of stakeholder voting in ensuring the success of this new settlement approach, highlighting past legal challenges that hindered previous efforts.
The company expresses confidence in securing the necessary support from claimants, aiming for a settlement that would comprehensively resolve the litigation and prevent opt-outs for separate claims. However, opinions among attorneys representing cancer victims appear to be varied, with some expressing optimism about the potential for closure through this proposed plan.
