Johnson & Johnson (J&J) has reportedly reached a preliminary deal with over 40 US states concerning their inquiry into the marketing of its talc-based baby powder and related products. The healthcare giant anticipates paying around $700 million (£552 million) as part of a broader settlement aimed at resolving claims regarding the safety of these products.
J&J has faced over 50,000 lawsuits from individuals alleging that the use of its talc-based baby powder led to cancer, with some claiming the presence of cancer-causing asbestos. The company established a subsidiary to address these claims in bankruptcy court but faced legal challenges to its proposed $9 billion settlement last year.
While the deal with US states awaits finalization, J&J emphasizes its commitment to broader resolution efforts. Erik Haas, worldwide vice president of litigation for Johnson & Johnson, stated, “The company continues to pursue several paths to achieve a comprehensive and final resolution of the talc litigation.” He confirmed the tentative agreement with state attorneys general and highlighted ongoing efforts to address the claims of those not participating in the bankruptcy resolution.
Despite winning a majority of talc-related lawsuits, J&J has faced significant losses, including a judgment of over $2 billion for 22 women. Analysts estimate the company may spend over $10 billion to settle legal battles.
This reported progress in state matters is seen as a positive development for former customers, with one lawyer stating that it clears “distractions” and directs attention toward a potential global talc powder settlement in 2024. Johnson & Johnson ceased US sales of talc-based baby powder in 2020, citing misinformation and later announced plans to end global sales, maintaining only a corn-starch version.
As J&J navigates the complexities of legal challenges, this tentative agreement marks a step toward resolving talc-related claims and underscores the ongoing efforts to address consumer concerns surrounding product safety.
