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J&J will pay roughly $9bn (£7.2bn) to settle tens of thousands of talc cancer lawsuits.The new offer dwarfs its $2bn offer. The corporation faces 40,000 claims alleging asbestos exposure in its talc products caused cancer.
J&J has refuted the claims, claiming decades of scientific research and regulatory approvals have proven its talc safe and asbestos-free. In 2020, it withdrawn its talc-based baby powder from the US market, citing “misinformation” about its safety.
It stopped global sales last year and switched to corn starch granules. LTL’s bankruptcy claim prompted the new offer. J&J created the subsidiary to handle talc lawsuits, but a January bankruptcy filing failed because the court decided the corporation was not in financial difficulty.
It reapplied for bankruptcy on Tuesday. “Importantly, neither LTL’s original file nor this re-filing is an admission of wrongdoing,” the company added. “The business continues to feel that these claims are frivolous and lack scientific substance,” said Erik Haas, J&J’s worldwide litigation vice president.
Yet, “resolving these issues through the tort system would take decades and entail substantial costs on LTL and the system, with most claimants never obtaining any recompense”.
“Resolving this case through the proposed reorganisation plan is both more equitable and more efficient, allows claims to be rewarded in a timely manner, and enables the company to stay focused on our objective to profoundly and positively affect health for humanity,” stated Mr. Haas.
