Johnson & Johnson Settles Multiple Lawsuits Over Talc Cancer Claims, Eyes Prepackaged Bankruptcy

Johnson & Johnson's JNJ worldwide vice president for litigation, Erik Haas, disclosed recent settlements with several law firms regarding claims linking J&J talc products to cancer. 

The aim behind these settlements is to pave the way for a consensual prepackaged bankruptcy resolution. While specifics regarding the finalization of these deals remain unclear, Haas emphasized their significance without disclosing dollar amounts or the exact number of cases covered.

Haas highlighted that the recent settlements encompassed cases associated with mesothelioma, a cancer type correlated with asbestos exposure, detailing the resolution of trial schedules for 2023 and a significant reduction in trials scheduled for 2024. 

On Monday, citing sources, Bloomberg noted that three legal firms have finalized settlements related to mesothelioma, resolving approximately 100 cases. 

These settlements did not necessitate J&J to allocate new charges against its earnings, Reuters noted, citing an investor call.

The talc-related litigations, previously halted as J&J pursued bankruptcy court intervention, have resumed. 

The trial outcomes have varied, with substantial plaintiff victories like the $2.1 billion judgment awarded to 22 ovarian cancer patients in 2021, balanced against instances like the New Jersey appeals court overturning a $223.7 million verdict due to concerns regarding plaintiffs' expert testimonies.

Amidst increasing legal challenges and what J&J has termed "misinformation" regarding talc product safety, the company ceased the sale of talc-based baby powder in favor of cornstarch-based alternatives.

Price Action: JNJ shares closed at $158.56 on Tuesday.

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