J&J settles talc powder lawsuit for US$700M but faces potential bankruptcy block from cancer victims

14 Jun 2024 --- A group of people living with cancer claims Johnson & Johnson’s (J&J) baby powder and other talc products caused their illnesses and asked a federal judge to block the company’s proposed bankruptcy settlement involving tens of thousands of lawsuits.

The plaintiffs reportedly filed a motion on Tuesday in a New Jersey court seeking a temporary restraining order to stop a J&J subsidiary from filing bankruptcy in Texas or other jurisdictions outside the state. They claim they will suffer “irreparable harm” absent a court order blocking such a filing.

J&J wants a subsidiary to declare bankruptcy following claimants’ vote on a US$6.48 billion settlement offer. The US pharma giant hopes to garner support from 75% of claimants as part of the prepackaged bankruptcy plan, which has a July 26 voting deadline.

Erik Haas, J&J’s worldwide VP of litigation, said in a statement: “This is yet another meritless pleading by the same small group of plaintiff law firms who have fought every single effort to resolve this litigation to date. We, therefore, will immediately ask the Court to reject this frivolous filing.”

J&J twice tried and failed to execute a Texas two-step bankruptcy maneuver. 

US$700M lawsuit settlement
The New Jersey-based company officially agreed to pay US$700 million to resolve allegations it did not warn consumers about possible health risks associated with its baby powder. The investigation by 42 states was led by Florida, North Carolina and Texas and Washington, DC.

“This is a major advancement for consumer product safety,” Ashley Moody, Florida attorney general, said in a statement.

The settlement prevents further potential lawsuits alleging the healthcare giant hid any link between the talc in its powder and various cancers.

For years, the American multinational has been involved in litigation related to its baby powder.

The company faces lawsuits from over 61,000 plaintiffs alleging its talc caused ovarian cancer or mesothelioma, a deadly cancer linked to asbestos exposure. Tens of thousands of talc lawsuits claim it fraudulently hid its dangers from shareholders.

However, the healthcare company asserts that its talc is safe, asbestos-free and does not cause cancer. 

By Sabine Waldeck