Johnson & Johnson to pay $700 million to settle talcum powder lawsuit

On June 11, New York State Attorney General Letitia James said that pharmaceutical and cosmetics company Johnson & Johnson (J&J) has agreed to pay $700 million to settle allegations of misleading customers about the safety of products containing talc powder.

In settlements with 42 states and Washington, D.C., J&J did not admit wrongdoing, although it agreed to withdraw the product from the North American market in 2020.

J&J's global vice president of legal affairs, Erik Haas, said the company continues to pursue a comprehensive and final resolution of the talc litigation.

In April 2023, representatives of the local judicial authorities proposed an $8.9 billion settlement that would fairly and effectively resolve all claims arising from the J&J talc-in-talcum-powder lawsuits. However, a judge rejected the proposal.

Since 2013, J&J has faced thousands of lawsuits in which plaintiffs say they developed cancer after using some of its products.

Most of the plaintiffs were women with ovarian cancer, some with mesothelioma — a deadly disease linked to asbestos exposure.

J&J maintains that its baby powder and other talc-containing products are safe, asbestos-free and do not cause cancer.

However, the New Jersey-based company agreed in principle to settle the case in January 2020. However, J&J used a strategy of shifting the money owed to tens of thousands of plaintiffs over 25 years related to its talc to a new subsidiary called LTL Management LLC, which then filed for bankruptcy protection in 2021, a move that was seen as an attempt to hinder lawsuits against J&J.

However, the courts have ruled that J&J and its subsidiaries are not in financial trouble and therefore do not qualify for bankruptcy.

Lawsuits against J&J have resumed after a court rejected the company's second bankruptcy filing.