Johnson & Johnson (NYSE:JNJ) is expected to confirm a $6.48 billion settlement plan to resolve thousands of lawsuits alleging that its baby powder products cause cancer.
What Happened: Reuters noted that the company will reveal Friday that over 75% of claimants have agreed to the settlement. This surpasses the threshold required for a judge to approve the proposed bankruptcy plan.
A Johnson & Johnson subsidiary will file for bankruptcy protection to finalize the settlement.
Also Read: Medicare Costs For Johnson & Johnson’s Psoriasis Drug Stelara Double When Obtained at Pharmacies.
Support from at least 75% of claimants is a legal prerequisite for advancing the plan to resolve current and future cases.
The voting deadline was July 26. Johnson & Johnson remains confident in achieving the necessary backing.
The company has been sifting through votes from claimants this week. It expects the proposed settlement to proceed to a bankruptcy judge for approval.
Johnson & Johnson’s latest effort represents a renewed attempt to conclude the long-standing talc litigation after courts rejected two prior bankruptcy filings.
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.
Price Action: JNJ stock is up 0.01% at $158.49 at last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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