Johnson & Johnson proposes $5.5 billion talc settlement to end marathon legal fight
Johnson & Johnson proposes a $5.5 billion settlement to resolve remaining lawsuits claiming its talc products caused ovarian cancer.Summary
Johnson & Johnson has proposed a $5.5 billion settlement to resolve ongoing litigation involving claims that its talc products caused ovarian cancer. The settlement is contingent upon at least 95% of the remaining claimants participating. This proposal follows a previous failed attempt by a company subsidiary, Red River Talc, to reach a $9 billion settlement that was denied by a U.S. bankruptcy court judge.
The company plans to make an initial payment of up to $3 billion next year, with no further payments required until 2028. Erik Haas, Johnson & Johnson's worldwide vice president of litigation, stated that while the company believes it would have ultimately prevailed in court, this resolution allows the firm to focus on its core mission. The company has already settled approximately 95% of mesothelioma-related lawsuits, state consumer protection claims, and talc-supplier disputes.
Following the announcement, shares of the New Brunswick, New Jersey-based company increased by more than 2% before the market opened on Tuesday.
(Source：Tnledger)