J&J Moves Closer to Resolving Baby Powder Lawsuits, 75% of Plaintiffs Support $6.5B Settlement

Johnson & Johnson JNJ has reportedly taken a significant step forward in its efforts to resolve thousands of lawsuits related to claims that its baby powder caused cancer.

Citing sources familiar with the situation, Bloomberg noted that more than 75% of plaintiffs agreed to a $6.5 billion settlement proposal through a secret ballot that concluded in late July.

This support is a critical milestone for Johnson & Johnson, as it seeks to limit its liability by channeling the lawsuits into a specific unit created for this purpose.

Also Read: Court Rules Against Johnson & Johnson In Talcum Powder Cancer Study Case.

Johnson & Johnson spokesperson Clare Boyle declined to comment on the ballot results.

The Bloomberg report highlighted Johnson & Johnson had enlisted a consulting firm to manage the voting process as it continues to navigate ongoing litigation.

Despite the progress, Johnson & Johnson still faces significant legal challenges, and its efforts to settle these lawsuits have previously encountered obstacles in court.

The proposed settlement addresses claims that the talc-based version of Johnson & Johnson's baby powder caused ovarian and other gynecological cancers.

Earlier this year, Johnson & Johnson announced it had resolved 95% of claims that its baby powder was contaminated with asbestos, which allegedly caused mesothelioma—a cancer affecting the tissue surrounding the lungs and heart.

If the settlement plan garners sufficient support, Johnson & Johnson could pursue a fast-tracked Chapter 11 bankruptcy filing, particularly in Texas, which is perceived as more favorable to businesses than New Jersey.

Under the current proposal, Johnson & Johnson would distribute $6.5 billion over 25 years to resolve current and future claims related to ovarian and other gynecological cancers.

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.

Most outstanding cases are being handled by a federal judge in New Jersey, where pre-trial information exchanges are taking place. However, with the recent voting outcome, Johnson & Johnson is one step closer to potentially resolving a large portion of these claims through its proposed settlement plan.

Price Action: JNJ stock is trading lower by 0.41% to $159.23 at the last check on 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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