Johnson & Johnson has proposed a $505 million settlement with two bankrupt mining companies that supplied J&J with asbestos-contaminated talc for its talcum powder products.
Part of the settlement amount would go toward a settlement trust for miners who worked for Imerys Talc America and Cyprus Mines Corporation and contracted asbestos-related diseases such as mesothelioma, an aggressive form of cancer.
According to the settlement agreement proposed last week, J&J would make an initial payment of $225 million. The remaining balance of $228 million would be due on Dec. 31, 2025.
The dispute between J&J and the mining companies began in 2019 when Imerys filed for bankruptcy to evade talc liability. Cyprus filed for bankruptcy in 2021.
Many cancer victims who sued J&J named its talc suppliers as co-defendants. Imerys and Cyprus argued that indemnification agreements with J&J protected them from liability claims from those who became ill after using the pharma company’s talcum powder products.
Voting Deadline Nears on Another Proposed J&J Settlement
Meanwhile, J&J is hoping to settle its ovarian cancer liability through bankruptcy. More than 61,000 claimants who contracted the disease after prolonged use of the company’s baby powder or had an immediate family member die from ovarian cancer have until July 26 to vote on a reorganization plan that would include a $6.48 billion payout to them.
If the plan is approved, each claimant would receive between $50,000 and $150,000.
In 2021, J&J created the LLT Management subsidiary, which assumed the company’s talc liability. In a Texas two-step maneuver, the subsidiary then filed for bankruptcy in the Lone Star State. That attempt and a subsequent one failed.
After the $6.48 million settlement was proposed, lawyers for some talc claimants who believed the agreement to be inadequate tried to block J&J from filing for bankruptcy a third time in Texas or any other jurisdiction outside New Jersey. However, in June a federal judge rejected the attorneys’ request.
