J&J's Tentative $700M Agreement To Resolve Talc Powder-Related Lawsuits Across US States

Healthcare giant Johnson & Johnson JNJ has reached a tentative agreement to pay approximately $700 million to settle an investigation involving over 40 US states.

The settlement seeks to resolve claims that J&J failed to disclose connections between its talc powder and various cancers. 

Discussions between J&J and state attorneys general are ongoing to finalize the specific terms, though both sides have agreed on the total amount.

This move follows two unsuccessful attempts to impose settlements on former users via bankruptcy courts. Citing analysts, Bloomberg notes that the protracted litigation and the looming threat of potential cancer-related lawsuits have restrained the company's stock price.

Previously, J&J earmarked $400 million as part of a bankruptcy settlement offer to resolve US states' consumer protection claims. Following discussions mediated in December, the company has agreed to augment the payout.

While only Mississippi and New Mexico have filed lawsuits against J&J regarding the marketing of its talcum powder, 42 states and the District of Columbia have engaged in a joint investigation into the company's marketing practices. 

Notably, several state attorneys general, including those from Arizona, North Carolina, and Texas, have demanded information concerning J&J's alleged mishandling of baby powder.

With legal exposure beyond state claims, J&J confronts over 50,000 suits alleging that its talc-based powders containing asbestos pose a cancer risk. Although many claims relate to ovarian cancer, others involve mesothelioma, tied to asbestos exposure, consolidated before a federal judge in New Jersey.

Price Action: JNJ shares are down 0.63% at $160.11 on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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