Pharmaceutical giant Johnson & Johnson has agreed to pay an $8.9 billion settlement to resolve claims related to cosmetic talc litigation. The company will pay the settlement over the course of 25 years. It represents a nearly $7 billion increase from the initial October 2021 agreement.
At Bailey Cowan Heckaman PLLC, we have over 150 years of combined legal experience holding manufacturers accountable for their wrongdoing. We continue to investigate talc lawsuit cases against Johnson & Johnson. If you or a loved one was diagnosed with cancer after repeated use of talcum powder, contact our office at (888) 367-7160 to schedule a free, no-obligation consultation.
According to a press release dated April 4, 2023, Johnson & Johnson subsidiary LTL Management LLC has “re-filed for voluntary Chapter 11 bankruptcy protection.” The reorganization plan is an attempt to resolve current and future claims related to talc litigation against Johnson & Johnson.
As part of the reorganization, Johnson & Johnson has agreed to pay $8.9 billion over the course of 25 years to settle tens of thousands of claims related to the use of their talcum powder. The settlement represents a $6.9 billion increase over the October 2021 agreement of $2 billion. The company states that it has the support of over 60,000 claimants.
Despite the multi-billion dollar settlement agreement, Johnson & Johnson and its subsidiary LTL Management LLC continue to deny any wrongdoing. The company maintains that its “talcum powder products are safe.”
Recent studies, however, indicate that repeated use of talcum powder near the genitals increases the risk of ovarian cancer by 20-30%. Thousands of lawsuits have been filed against Johnson & Johnson. Many of the claims allege that the company knew that its product was dangerous and failed to warn consumers.
Johnson & Johnson has announced that they will stop selling talc-based baby powder worldwide this year. They had previously ceased sales in the United States due to what they referred to as a fall in demand related to “misinformation.”
If approved, the settlement would enable plaintiffs who were diagnosed with cancer before April 1, 2023, to receive payment from a bankruptcy trust within one year, according to Reuters. Individuals diagnosed after April 1 would have access to trust money set aside for the next 25 years.
It is important to note that the October 2021 bankruptcy filing was dismissed. Critics of the plan referred to it as a “Texas two-step bankruptcy” wherein Johnson & Johnson created a subsidiary solely to absorb the liability of these claims by filing for bankruptcy.
If you were diagnosed with cancer after using Johnson & Johnson talcum-based baby powder, you might have a valid legal claim. With this proposed settlement plan, it is imperative that you act now.
Contact our office at (888) 367-7160 to schedule a free, no-obligation consultation. There are no fees unless we win. Call now to get started.