Johnson & Johnson proposes having to pay $8.9 billion to settle talcum powder lawsuits : NPR

NEW BRUNSWICK, N.J. — Johnson & Johnson is earmarking almost $9 billion to cover allegations that its baby electrical power containing talc induced most cancers, a lot more than quadrupling the volume that the company had earlier set aside to pay out for its likely liability.

Underneath a proposal announced Tuesday, a J&J subsidiary will re-file for Chapter 11 individual bankruptcy protection and request courtroom approval for a system that would consequence in 1 of the largest item-liability settlements in U.S. heritage.

The $8.9 billion that J&J would transfer to the subsidiary, LTL Management, would be payable around the next 25 a long time. The sum is up from the $2 billion that the New Brunswick, New Jersey, enterprise set aside in Oct 2021.

The revised amount of money is remaining backed by much more than 60,000 get-togethers that have filed lawsuits alleging damage from J&J talcum powder, according to the firm.

J&J just isn’t admitting any wrongdoing as section of the proposed settlement, a issue that corporation govt emphasised in a Tuesday statement that taken care of the claims “are specious and absence scientific merit.”

But combating the lawsuits in court would take a long time and be high-priced, claimed Erik Haas, J&J’s all over the world vice president of litigation.

The lawsuits submitted against J&J experienced alleged its talcum powder prompted customers to develop ovarian cancer, by means of use for female cleanliness, or mesothelioma, a most cancers that strikes the lungs and other organs.

The promises contributed to fall in J&J’s sales of baby powder, prompting the corporation to quit advertising its talc-centered items in 2020. Last year, J&J declared programs to cease sales of the products throughout the world.

J&J’s stock rose 3% in soon after-hrs buying and selling Tuesday following the company’s announcement.