Johnson & Johnson (J&J) is in active negotiations with holdout plaintiffs’ attorneys over its proposed $6.5 billion settlement related to lawsuits claiming that its talc-based products, including baby powder, caused cancer. The pharmaceutical giant aims to resolve these legal challenges by securing a global settlement through the bankruptcy of a subsidiary despite previous rejections by federal courts.
J&J has already garnered significant support from a majority of the claimants. However, the company has temporarily paused the vote count to allow more time for discussions with those still opposing the settlement. The goal is to eliminate the remaining opposition and finalize the settlement plan, which would bring an end to all ongoing talc-related lawsuits and prevent new ones from being filed in the future.
Erik Haas, J&J’s Worldwide Vice President of Litigation, stated that the company agreed to a short extension of the certification timeline. This extension is intended to give plaintiffs’ attorneys additional time to consult with their clients and potentially garner more support for the settlement.
Andy Birchfield, a critical lawyer leading the opposition, expressed cautious optimism. He noted that while negotiations are welcome, he remains prepared to resist any further attempts by J&J to use bankruptcy to settle these claims. Birchfield emphasized that the ultimate goal is to secure fair and timely compensation for people living with ovarian cancer linked to J&J’s talc products.
J&J’s proposed bankruptcy settlement strategy hinges on obtaining approval from at least 75% of the talc claimants. If successful, the subsidiary’s bankruptcy would enforce a global settlement, halting all related lawsuits and preventing new claims from being filed.
The ongoing legal battle has been extensive, with over 62,000 plaintiffs alleging that J&J’s talc products were contaminated with asbestos, leading to ovarian and other cancers. While J&J has consistently denied these allegations, asserting that its products are safe and asbestos-free, the company has faced some significant legal setbacks, including a $2.12 billion verdict awarded to 22 women.
If finalized, this settlement would focus on resolving claims related to ovarian and other gynecological cancers, building on J&J’s previous settlements involving mesothelioma claims. J&J’s approach aims to centralize all claims within a single settlement process, potentially bringing closure to one of the most contentious legal challenges in the company’s history.
