Johnson & Johnson proposes paying nearly $9 billion to settle talcum powder lawsuits

Under a proposal announced Tuesday, a J&J subsidiary will re-file for Chapter 11 bankruptcy protection and seek court approval for a plan that would result in one of the largest product-liability settlements in US history New Brunswick, NJ: Johnson & Johnson is earmarking nearly $9 billion to cover allegations that its baby powder containing talc caused cancer, more than quadrupling the amount that the company had previously set aside to pay for its potential liability. Under a proposal announced Tuesday, a J&J subsidiary will re-file for Chapter 11 bankruptcy protection and seek court approval for a plan that would result in one of the largest product-liability settlements in US history. J&J isn’t admitting any wrongdoing as part of the proposed settlement, a point that a company executive emphasized in a Tuesday statement that maintained the claims “are specious and lack scientific merit.” But fighting the lawsuits in court would take decades and be expensive, said Erik Haas, J&J’s worldwide vice president of litigation. The lawsuits filed against J&J had alleged its talcum powder caused users to develop ovarian cancer, through use for feminine hygiene, or mesothelioma, a cancer that strikes the lungs and other organs.