Johnson & Johnson announced on Monday that it would pay an estimated $5.5bn to settle tens of thousands of lawsuits. These lawsuits allege that the company's baby powder and other talc products caused ovarian cancer.
The proposed settlement covers approximately 76,000 claims, including those consolidated in a federal court in New Jersey and related state court cases. This represents nearly all remaining talc claims against the company.
The deal could bring an end to a contentious, decade-long legal battle, but it must be accepted by 95% of the ovarian cancer claimants in state or federal court to become final. Johnson & Johnson expects to make initial payments of $3bn in 2027, with further payments in 2028.
Erik Haas, Johnson & Johnson's vice-president of litigation, stated the claims were "meritless" but the company sought closure. Chris Seeger, a lawyer representing about 2,500 clients, indicated the total payout could reach $7bn or more, as the settlement assigns specific values to claims without capping the total.
The company stopped selling talc-based baby powder in the US in 2020. This agreement applies only to existing claims and does not address future lawsuits.