Johnson & Johnson Raises Talc Settlement Offer to $9B, Moves Closer to Settlement Victory

Johnson & Johnson JNJ has reportedly increased its settlement offer by $1 billion, now totaling about $9 billion, to address claims that its talc baby powder caused gynecological cancer.

This move has secured preliminary support from Allen Smith, a prominent tort lawyer representing around 12,000 claimants, marking a significant shift in the ongoing legal battle.

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Smith, who filed the first talc-related lawsuit against Johnson & Johnson in 2009, has been a staunch opponent of the company’s previous settlement attempts through bankruptcy.

Johnson & Johnson aims for a positive vote from 90% of claimants, which is well above the three-quarters required.

The revised plan offers increased compensation and aims to cap Johnson & Johnson’s liabilities, particularly concerning the strongest ovarian cancer claims.

It also includes smaller, guaranteed payouts for other gynecological cancer claims that may not hold up in court. This strategic move could help Johnson & Johnson avoid prolonged individual lawsuits and the risks of substantial jury-trial verdicts.

Despite Smith’s new stance, there remains opposition from Beasley Allen, another law firm representing talc victims, the Wall Street Journal notes. Partner Andy Birchfield has emphasized that previous rejections of Johnson & Johnson’s proposals still stand, and claimants are not bound to follow Smith’s latest recommendations.

In response, Smith intends to seek new votes under the revised settlement terms, citing existing agreements that allow such a step.

Price Action: JNJ stock is down 0.83% at $165.98 at the last check on 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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