Wednesday, January 15, 2025
HomeBusinessJohnson & Johnson settles $700 million talc case with U.S. states.

Johnson & Johnson settles $700 million talc case with U.S. states.

Johnson & Johnson has agreed to pay $700 million to settle an investigation by 42 U.S. states and Washington, D.C. concerning its marketing of talc-based products like baby powder, which have been linked to causing cancer. The settlement comes after allegations that the company misled consumers into believing their talc products were safe, despite evidence suggesting otherwise. While J&J maintains that their products do not cause cancer and did not admit wrongdoing in the settlement, this agreement marks a significant step towards ensuring consumer product safety.

Florida Attorney General Ashley Moody praised the settlement as a “major advancement for consumer product safety,” as it resolves charges that Johnson & Johnson deceived the public about the safety of their talc-based products. The company still faces tens of thousands of talc lawsuits, with most plaintiffs being women with ovarian cancer or mesothelioma, a cancer linked to asbestos exposure. Despite these ongoing legal battles, J&J ceased global sales of talc-based baby powder last year and transitioned to using corn starch as the main ingredient, asserting that their products do not contain asbestos.

In an effort to address the remaining talc litigation, Johnson & Johnson proposed a $6.48 billion settlement to resolve most of the lawsuits through a third bankruptcy filing. The company has set aside an $11 billion reserve to cover all talc-related liabilities and continues to pursue various avenues to reach a comprehensive resolution. J&J’s worldwide vice president of litigation, Erik Haas, stated that they are committed to addressing the claims of those who opt out of the bankruptcy resolution process through litigation or settlement, highlighting the ongoing efforts to conclude the long-standing talc litigation.

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