Johnson & Johnson agreed to pay as much as $5.5 billion to resolve roughly 76,000 ovarian talc lawsuits, following a federal court ruling that plaintiffs could not prove their cancers were caused by the company's talc products. The settlement requires participation by at least 95% of remaining claimants.
Johnson & Johnson agreed to pay as much as $5.5 billion to resolve roughly 76,000 ovarian talc lawsuits.
"After decades of litigation and full vetting of the science in an extensive hearing, plaintiffs effectively conceded their inability to prove specific causation," Erik Haas, Worldwide Vice President of Litigation at Johnson & Johnson, said. "The Court's order placed plaintiffs in an untenable position of having to present specific causation evidence to maintain their claims that does not exist."
The proposed resolution follows a July 22 ruling by the Multi-District Litigation court ordering plaintiffs to show why their claims should not be dismissed after they withdrew their specific causation experts in two bellwether cases. The hearing demonstrated those opinions were not based upon reliable scientific methodologies, the company said. The settlement is conditioned on participation by lead plaintiff firms representing at least 95% of the remaining claims. JNJ committed $5.5 billion, with the first payment of no more than $3 billion due in 2027 and no additional payments before 2028.
The agreement brings finality to a 15-year legal battle that has weighed on JNJ's stock and public perception. The company has prevailed in the vast majority of ovarian cases tried to date and previously settled about 95% of mesothelioma lawsuits and all state consumer protection claims, as well as all talc-supplier disputes.
The MDL court's specific causation ruling confirmed JNJ's longstanding position that the claims lacked scientific merit, the company said. Research and decades of studies by independent medical experts around the world continue to support the safety of cosmetic talc, according to JNJ. The company has maintained that its talc products do not contain asbestos and do not cause cancer, a position supported by US scientific organizations and regulatory agencies.
JNJ discontinued talc-based Johnson's Baby Powder globally in 2023 as part of a worldwide portfolio assessment. The company separated its consumer health business, Kenvue, in August 2023, but retained all talc-related liabilities and agreed to indemnify Kenvue for any costs from US and Canadian litigation.
The settlement removes a major legal overhang that has shadowed JNJ for years. Investors will watch for confirmation that the 95% participation threshold has been met, which would effectively end the ovarian talc litigation.
This article is for informational purposes only and does not constitute investment advice.
