Johnson & Johnson JNJ is reportedly negotiating with plaintiffs’ lawyers who have opposed its proposed $6.48 billion settlement over claims that its talc-based baby powder and other products cause cancer.
What Happened: Per a Reuters report, the New Brunswick, New Jersey-based company aims to resolve the remaining holdouts as it seeks to finalize the deal through the bankruptcy of a subsidiary following setbacks in federal courts.
Johnson & Johnson has temporarily paused the voting process to gather more votes from plaintiffs who have been resistant.
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“We have agreed to a short extension of the certification timeline,” said Erik Haas, Johnson & Johnson’s worldwide vice president of litigation, said Friday. “This will allow these plaintiffs’ attorneys time to speak to their claimants to now consider supporting the plan.”
The company plans to place a subsidiary into bankruptcy if at least 75% of the claimants agree to the settlement proposal.
The settlement would resolve all current talc-related lawsuits and prevent future cases that allege that Johnson & Johnson’s products cause ovarian cancer and other illnesses.
Attorney Andy Birchfield, a key opponent of Johnson & Johnson’s bankruptcy strategy, expressed openness to further negotiations but emphasized that he remains ready to challenge another Chapter 11 filing if necessary.
Why It Maters: Johnson & Johnson is currently facing lawsuits from over 62,000 plaintiffs who claim that the company’s talc products were contaminated with asbestos, leading to cancer diagnoses.
In May, Johnson & Johnson announced its intention to proceed with a $6.475 billion settlement to resolve numerous lawsuits related to ovarian cancer arising from cosmetic talc litigation.
The company has already paid approximately $5 billion to settle talc-related claims, including those involving mesothelioma and other cancers and allegations of illegal marketing practices by U.S. states.
Reuters cited internal documents and memos, including deposition and past trial testimonies, that show how Johnson & Johnson withheld info on the trace amounts of asbestos from regulators and the public for decades.
Price Action: JNJ closed at $164.13 on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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