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Johnson & Johnson set aside nearly $9 billion to cover allegations that baby formula containing talc caused cancer, more than four times the amount the company had previously set aside to pay for potential liability.
In a proposal announced Tuesday, the J&J subsidiary will file again for Chapter 11 bankruptcy protection and seek court approval for a plan that would lead to one of the largest product liability settlements in U.S. history.
The $8.9 billion that J&J will transfer to its subsidiary, LTL Management, will be paid over the next 25 years. The amount is up from $2 billion set aside by the New Brunswick, New Jersey, company in October 2021.
The revised amount is being supported by more than 60,000 parties who have filed lawsuits alleging damages from J&J’s talcum powder, according to the company.
J&J says the claims are ‘exploitation’
J&J did not admit wrongdoing as part of the proposed settlement, a point company executives emphasized in a statement Tuesday that maintained the claims were “frivolous and without scientific merit.”
But fighting the lawsuit in court would take decades and be expensive, said Erik Haas, J&J’s vice president of worldwide litigation.
Lawsuits filed against J&J allege the talcum powder caused users to develop ovarian cancer, using feminine hygiene, or mesothelioma, a cancer that attacks the lungs and other organs.
A December 2018 Reuters investigation revealed that J&J had known for decades about tests showing its talc sometimes contained carcinogenic asbestos but withheld that information from regulators and the public. J&J says its baby powder and other talc products are safe, do not cause cancer and do not contain asbestos.
The claims contributed to a decline in J&J’s baby powder sales. Last year, J&J announced plans to end sales of the product worldwide.
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