Facing pressure from potential lawsuits, Johnson & Johnson has tentatively agreed to pay nearly $700 million to end a probe by more than 40 US states into claims that the company failed to warn consumers that its talc-based baby powder could cause ovarian cancer or mesothelioma.
J&J CFO Joseph Wolk confirmed the $700 million amount to the Wall Street Journal on Jan. 23. Bloomberg reported earlier that people familiar with the matter who wished to remain anonymous said the healthcare products giant and representatives for state attorneys general had agreed on that dollar figure.
Mississippi and New Mexico are the only states that have filed suits against J&J. However, in an October securities filing, the company revealed that 42 states and the District of Columbia are investigating its talc product marketing.
The deal J&J made with the states doesn’t include the Mississippi and New Mexico lawsuits because they are already underway. The Mississippi suit alone could cost the healthcare products giant as much as $6 billion in damages.
Consumer Lawsuits Not Included in the Deal
The settlement with the states won’t affect the tens of thousands of current lawsuits consumers have filed against J&J. Some of those suits, which claim the company’s talcum powder caused cancer, could go to trial this year.
Consumers suing J&J claim the company has known for 50 years that its baby powder contained small amounts of the carcinogen asbestos. Over the past decade, at least 12 juries have awarded more than $6.5 billion in damages. In some cases, judges later reduced the payments or overturned the verdicts.
J&J discontinued talc-based baby powder sales worldwide in late 2023.
J&J’s Bankruptcy Attempts
Over the past year, J&J has made two unsuccessful bids for Chapter 11 bankruptcy protection. In the second attempt, the company proposed setting aside nearly $9 billion to settle 40,000 consumer lawsuits. However, a judge rejected the offer.
J&J originally planned to set aside just $400 million to settle the state claims. Following mediation, the company allegedly agreed to increase that amount.
