To resolve a case involving cancer-causing baby powder, Johnson & Johnson has agreed to pay $8.9 billion.

In response to 70,000 lawsuits asserting that the company’s talcum powder products caused cancer, Johnson & Johnson (J&J) has decided to pay $8.9 billion.

The $8.9 billion trust was made possible thanks to a subsidiary that declared bankruptcy in order to pay out the planned settlement over a 25-year period. The deal will settle all current and future claims involving Johnson & Johnson talc-containing products, such as baby powder, if it is authorised by a bankruptcy court.

Lawyers predict that the new insolvency approval procedure will start soon.

The settlement was hailed as a historic win for the tens of thousands of women suffering from gynaecological cancers brought on by J&J’s talc-based products by a group of attorneys who are representing nearly 70,000 plaintiffs, including families of people who perished from ovarian cancer and mesothelioma.

Both the settlement itself and the new bankruptcy petition filed by Johnson & Johnson subsidiary LTL Management must be approved by the court in order for the agreement to become official. On the other hand, the business must convince enough claimants to agree with the settlement plan.

LTL was originally created by Johnson & Johnson in 2021 to avoid talc litigation, but after a prior bankruptcy filing by the unit was contested, the courts decided that bankruptcy wasn’t the best course of action. But the current state of affairs paints a completely different image.

If accepted, today’s settlement proposal would put an end to a protracted legal dispute that had damaged Johnson & Johnson’s image. One of the company’s most recognisable products, even though it isn’t a top seller, is its baby powder. Many of the petitioners claimed that the talc used to make the product was contaminated with asbestos, a known carcinogen.

Relevantly, the business declared in 2020 that it would cease marketing talc-based baby powder in the US and end global sales of the item this year, switching to a cornflour alternative. J&J also plans to separate its consumer health division into a new firm called Kenvue, which will include brands like baby powder, Neutrogena, and Tylenol. Johnson & Johnson’s pharmaceutical and medicinal businesses will continue to operate.










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