Johnson & Johnson offers $5.5 billion to settle talc lawsuit
Johnson & Johnson has agreed to a $5.5 billion settlement to resolve remaining lawsuits claiming its talc products caused ovarian cancer.Summary
Johnson & Johnson has agreed to pay $5.5 billion to settle remaining lawsuits alleging that its talc products caused ovarian cancer. The settlement is contingent upon at least 95% of the remaining claimants participating. This move follows a previous setback when a U.S. bankruptcy court judge denied a $9 billion settlement proposed by a company subsidiary, Red River Talc, last year.
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 move past the litigation and focus on its core mission.
Johnson & Johnson has already settled approximately 95% of filed lawsuits related to mesothelioma, as well as state consumer protection claims and talc-supplier disputes. Following the announcement, shares of the New Brunswick, New Jersey-based company rose more than 2% before the market opened on Tuesday.
(Source：Inquirer)