Johnson and Johnson offers $8.9 billion to settle talcum powder lawsuits
US multinational Johnson and Johnson has proposed to make a contribution of 8.9 billion dollars (8.146 billion euros) to settle all present and future lawsuits over the alleged link between cancer and its baby powder, the company announced.
Voluntary bankruptcy protection
In this regard, LTL Management (LTL), a subsidiary of Johnson and Johnson established to concentrate the claims, has again filed for voluntary Chapter 11 bankruptcy protection to obtain approval of a reorganization plan that will seek to resolve «fairly and efficiently» all claims against the multinational over the talc litigation.
Increase over the US$2 billion committed in the previous proposal raised
The company has thus agreed to contribute up to a present value of $8.9 billion, payable over 25 years, to settle all «current and future» talc claims, an increase over the $2 billion (€1.83 billion) committed in the previous proposal made in LTL’s initial bankruptcy filing in October 2021.
Commitments from over 60,000 claimants
«LTL has obtained commitments from more than 60,000 current plaintiffs to support a global settlement on these terms,» Johnson and Johnson has announced. In any event, the multinational has stressed that neither LTL’s original filing nor this new filing is an admission of wrongdoing, nor an indication that the company has changed its position that its talcum powder products are safe. «The company continues to believe that these claims are misleading and lack scientific merit,» said Erik Haas, Johnson and Johnson’s global vice president of litigation.
It would take decades to resolve these cases judicially
However, the multinational’s representative indicated that, as recognized by the Bankruptcy Court, resolving these cases judicially would take decades and impose significant costs on LTL and the system, while most claimants would never receive any compensation. «Resolving this matter through the proposed plan of reorganization is more equitable and more efficient, allowing claimants to be compensated in a timely manner,» he added.