Johnson & Johnson has proposed paying nearly $9 billion to settle tens of thousands of lawsuits in North America alleging that baby powder and other talc-based products cause cancer.
The healthcare giant said it still believes the claims are “false” but hoped the new settlement offer would help end its litigation.
The number represents a big boost from the previously proposed $2 billion.
The new offering has significant support from people connected to the case, it said.
The company faces more than 40,000 lawsuits from former customers claiming use of its baby powder caused cancer, including some alleging the product contained cancer-causing asbestos.
It halted U.S. sales of its talc-based baby powder in 2020, citing “misinformation” that had undermined demand for the product, which was used to prevent diaper rash and for other cosmetic uses, including dry shampoo. It announced it would end sales worldwide last year.
Prior to this decision, the company had been selling baby powder for almost 130 years.
The company has been trying to settle the lawsuits in bankruptcy court since 2021, after establishing a subsidiary to handle the claims.
However, his efforts ran into trouble after a previous bankruptcy court ruling found that the subsidiary was not in financial distress and could not use the bankruptcy system to settle the lawsuits.
“The company continues to believe these allegations are flimsy and lack scientific merit,” said Erik Haas, global vice president of litigation at Johnson & Johnson.
But he said: “Resolving these cases in the compensation system would take decades and impose significant costs on LTL and the system, with most plaintiffs never receiving compensation.”
“The resolution of this matter through the proposed reorganization plan is both fairer and more efficient, allows for timely compensation for beneficiaries and allows the company to remain focused on our commitment to make a profound and positive impact on health for humanity.”
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