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Johnson & Johnson company (J&J) has agreed to pay $700 million to settle an investigation by 42 US states and Washington, D.C into the marketing of its talc-based products, including baby powder, which have been blamed for allegedly causing cancer. The settlement resolves allegations that Johnson & Johnson misled consumers into believing its talc products were safe.
The states, led by Florida, North Carolina, and Texas, spearheaded the investigation. Despite agreeing to the settlement, Johnson & Johnson did not admit any wrongdoing and has consistently maintained that its talc products are safe and do not cause cancer. The company first announced a settlement in principle in January.
“This is a major advancement for consumer product safety,” stated Florida Attorney General Ashley Moody.
While this settlement addresses the state investigations, Johnson & Johnson still faces tens of thousands of lawsuits. As of March 31, approximately 61,490 people were suing the company over its talc products. Most plaintiffs are women with ovarian cancer, while a smaller number suffer from mesothelioma, a type of cancer linked to asbestos exposure.
Last year, Johnson & Johnson ceased selling its talc-based baby powder globally, replacing talc with cornstarch as the main ingredient. The company maintains that its products do not contain asbestos.
Johnson & Johnson has twice attempted to manage the litigation by placing a subsidiary created to contain its talc liabilities into bankruptcy, but both attempts were rebuffed by courts. On May 1, the company proposed a $6.48 billion settlement to resolve most of the litigation through a third bankruptcy filing. It has set aside an $11 billion reserve to cover all talc liabilities.
Erik Haas, J&J’s worldwide vice president of litigation, stated on Tuesday, “The company continues to pursue several paths to achieve a comprehensive and final resolution of the talc litigation.” He added, “We will continue to address the claims of those who do not want to participate in our contemplated consensual bankruptcy resolution through litigation or settlement.”
As Johnson & Johnson navigates these legal challenges, the $700 million settlement marks a significant step in resolving the allegations surrounding its talc-based products.
– Arise News.
