Johnson & Johnson JNJ announced on Tuesday a tentative settlement to address investigations by 42 U.S. states and Washington, D.C., regarding alleged misleading information about the safety of its talc products linked to cancer cases.
The pharmaceutical giant is set to pay approximately $700 million, marking a crucial step in resolving the contentious talc litigation.
The agreement, disclosed by Johnson & Johnson’s Chief Financial Officer Joseph Wolk, signifies an effort to put the matter to rest, although it does not encompass private plaintiffs’ cases, some of which are scheduled for trial later this year, Wall Street Journal noted, citing an interview.
Also Read: Johnson & Johnson’s Clock 12% Q4 Revenue Growth, Cancer and Crohn’s Disease Drugs Account as Largest Sellers.
While the settlement covers state claims, it does not address over 52,000 personal-injury lawsuits alleging cancer caused by J&J’s talcum powders, including the iconic Johnson’s Baby Powder.
Despite the settlement’s significance, Johnson & Johnson might face additional costs between $10 billion-$15 billion to address the broader litigation.
J&J has consistently maintained the safety of its talc products, emphasizing their asbestos-free nature and disputing any connection to cancer.
Efforts to use bankruptcy proceedings for mass settlements faced setbacks in court, with a rejected plan proposing an $8.9 billion payout to talc claimants.
The recent state settlement could potentially ease future bankruptcy filings, providing a pathway for resolving outstanding claims.
Earlier this month, Bloomberg reported Johnson & Johnson’s tentative agreement to pay approximately $700 million to settle an investigation involving over 40 US states.
The move followed two unsuccessful attempts to impose settlements on former users via bankruptcy courts.
Erik Haas, J&J’s worldwide vice president of litigation, said Tuesday that the company is pursuing several paths to resolve the talc litigation fully.
Price Action: JNJ shares are down 1.43% at $160.15 on the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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