A subsidiary of Johnson & Johnson is now proposing to pay approximately $6.48 billion over 25 years as part of a settlement in the U.S. to cover allegations that its baby powder containing talc caused ovarian cancer.
The lawsuits filed against J&J had alleged its talcum powder caused users to develop ovarian cancer, through use for feminine hygiene, or mesothelioma, a cancer that strikes the lungs and other organs.
The claims contributed to drop in J&J's sales of baby powder, prompting the company to stop selling its talc-based products in 2020. In 2022, J&J announced plans to cease sales of the product worldwide.
J&J said that the reorganization plan for the subsidiary that was being announced on Wednesday was significantly different from the previous reorganization that was announced. Those differences include a three-month solicitation period during which ovarian claimants can vote for or against the plan. This is something that was denied in prior bankruptcy cases, the company said. And if 75% of claimants vote in favor of the plan, a subsidiary may file a "prepackaged" Chapter 11 bankruptcy to secure its confirmation.
J&J said that the plan would resolve 99.75% of all pending talc lawsuits against it and its affiliates in the U.S.
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Johnson & Johnson Loses More Ground In Talc-Powder Cancer Case (VIDEO)
The remaining pending personal injury lawsuits that relate to mesothelioma will be addressed outside of the plan. The company said that it has already resolved 95% of mesothelioma lawsuits filed to date.
State consumer protection claims will also be addressed outside the plan. J&J said that it already has agreements in principle to do so. The company has also reached an agreement in principle to resolve all talc-related claims against it in the bankruptcy cases filed by its talc suppliers.
J&J said it continues to stand by the safety of its products and reiterated that none of the talc-related claims against it have merit.
Shares rose more than 2% before the market open.
