Tac powder cancer claims: Johnson & Johnson proposes an $8.9 billion settlement

Johnson & Johnson cancer settlement

Johnson & Johnson, the world’s largest pharmaceutical company, offered a $8.9 billion settlement on Tuesday. To resolve years-old lawsuits alleging that its talcum powder products caused cancer.

The bankruptcy judge should approve the proposal. It “will equitably and efficiently resolve all claims arising from cosmetic talc litigation,” according to the New Jersey-based company.

The $8.9 billion payout, will be the largest product liability settlement ever in the US if the court authorise it. What’s more, ranking alongside those tobacco companies and, more recently, opioid manufacturers.

Moreover, J&J was hit with thousands of lawsuits over talcum powder having traces of asbestos. Which is allegedly linked to ovarian cancer.

Company believes the claims are speculative and lack scientific merit

The company has never admitted guilt. But it will cease selling its talc-based baby powder in the U S and Canada in May 2020.

“The company continues to believe that these claims are speculative and lack scientific merit,” said Erik Haas, J&J’s vice president of litigation.

According to J&J, the $8.9 billion will be distribute over 25 years to tens of thousands of claimants through a J&J subsidiary. Along with LTL Management LLC, which was formed to handle the claims and has applied for bankruptcy protection.

LTL has “secured commitments from over 60,000 current claimants to support a global resolution on these terms,” according to the statement.

A previous LTL settlement was rejected by an appellate court. And now a bankruptcy court must accept the new LTL bankruptcy filing and settlement.

Earlier Johnson & Johnson suggested a $2 billion settlement in response to allegations that its cosmetic talc caused gynaecological cancers.

The newly proposed settlement, according to the business, is neither an admission of wrongdoing nor an indication. In addition, the company has changed its longstanding stance that its talcum powder products are safe.

“However, it is in the best interests of the company and all stakeholders to resolve this matter as quickly and efficiently as possible,” J&J said.

Firstly, the settlement, “allows claimants to be compensated promptly. Moreover allows the company to remain focused on our commitment to profoundly and positively impact health for humanity.”

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