United States bankruptcy judges have rejected Johnson & Johnson’s offer to settle thousands of lawsuits alleging that its talcum powder products cause ovarian cancer.
More than 60,000 claimants have filed suits arguing that these talcum products included asbestos, which Johnson & Johnson has denied. The company’s proposed US$10 billion settlement would have ended these claims, as well as preventing any further suits.
“The Company reiterates that none of the talc-related claims against it have merit and attempts to resolve this litigation were aimed at moving past this issue,” said Johnson & Johnson’s worldwide vice president of litigation Erik Haas.
“The decision to litigate every filed case is based on the simple fact that this is a fake claim created by greedy plaintiff lawyers looking for another deep pocket to sue and fueled by litigation-financed attorney advertising,” Haas said.
Johnson & Johnson subsidiary Red River Talc had sought approval for its Chapter 11 bankruptcy plan with Houston judge Christopher Lopez, with the companies offering to settle ovarian cancer-related claims on talcum products.
Lopez ruled that Johnson & Johnson’s settlement plan did not have sufficient support from the claimants, and had released legal claims from entities that had not also filed for bankruptcy.
Johnson & Johnson said it would continue to litigate these suits in the tort system, rather than appealing.
Two other proposals to resolve these claims by Johnson & Johnson’s talcum product subsidiaries were rejected in 2023 and 2024. Both Red River Talc and LTL Management, which filed the previous settlement offers, were created to manage Johnson and Johnson’s talcum liabilities.
The company ended sales of its talcum baby powder in the U.S. and Canada in 2020 and worldwide in 2022, following the lawsuits.
Johnson & Johnson’s (NYSE: JNJ) share price fell by 7.6% to close at US$153.25, below its previous close at $165.84. Its market capitalisation is $369.3 billion.
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