Johnson & Johnson proposes $5.5 billion talc settlement to end marathon legal fight - AP News

What the report says

The Associated Press reported that Johnson & Johnson has proposed a $5.5 billion settlement aimed at resolving remaining lawsuits alleging that its talc products caused ovarian cancer. The New Brunswick, New Jersey-based company said the deal depends on participation by at least 95% of remaining claimants, a threshold that would be crucial to ending the long-running litigation.

The proposal follows a setback last year for Red River Talc, a Johnson & Johnson subsidiary, when a U.S. bankruptcy judge rejected a separate $9 billion settlement plan that AP described as potentially among the largest mass-tort resolutions in history. Johnson & Johnson did not appeal that ruling and continued contesting claims in court. AP also reported that a federal judge recently directed plaintiffs to explain why pending talc cases should not be dismissed after their witnesses were unable to establish a direct causal link between the company’s product and cancer.

Under the new plan, Johnson & Johnson would make an initial payment capped at $3 billion next year, with no further payments due until 2028. Erik Haas, the company’s worldwide vice president of litigation, said in a statement that the court order left plaintiffs needing specific causation evidence and that the settlement would let the company move on, while maintaining that Johnson & Johnson believed it would have prevailed in continued litigation.

AP noted that Johnson & Johnson says it has already resolved about 95% of filed mesothelioma lawsuits, all state consumer protection claims and talc-supplier disputes. The settlement matters because it could significantly narrow one of the most prominent product-liability fights facing a major health care company, though it remains contingent on claimant participation and any necessary court processes.