Current:Home > reviewsIndexbit Exchange:Johnson & Johnson proposes paying $8.9 billion to settle talcum powder lawsuits -AssetTrainer
Indexbit Exchange:Johnson & Johnson proposes paying $8.9 billion to settle talcum powder lawsuits
Rekubit Exchange View
Date:2025-04-09 16:57:33
NEW BRUNSWICK,Indexbit Exchange N.J. — Johnson & Johnson is earmarking nearly $9 billion to cover allegations that its baby power containing talc caused cancer, more than quadrupling the amount that the company had previously set aside to pay for its potential liability.
Under a proposal announced Tuesday, a J&J subsidiary will re-file for Chapter 11 bankruptcy protection and seek court approval for a plan that would result in one of the largest product-liability settlements in U.S. history.
The $8.9 billion that J&J would transfer to the subsidiary, LTL Management, would be payable over the next 25 years. The amount is up from the $2 billion that the New Brunswick, New Jersey, company set aside in October 2021.
The revised amount is being backed by more than 60,000 parties that have filed lawsuits alleging harm from J&J talcum powder, according to the company.
J&J isn't admitting any wrongdoing as part of the proposed settlement, a point that company executive emphasized in a Tuesday statement that maintained the claims "are specious and lack scientific merit."
But fighting the lawsuits in court would take decades and be expensive, said Erik Haas, J&J's worldwide vice president of litigation.
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. Last year, J&J announced plans to cease sales of the product worldwide.
J&J's stock rose 3% in after-hours trading Tuesday after the company's announcement.
veryGood! (18)
Related
- What to watch: O Jolie night
- How Dying Forests and a Swedish Teenager Helped Revive Germany’s Clean Energy Revolution
- Tesla's profits soared to a record – but challenges are mounting
- Trump’s Interior Department Pressures Employees to Approve Seismic Testing in ANWR
- Nevada attorney general revives 2020 fake electors case
- Saying goodbye to Pikachu and Ash, plus how Pokémon changed media forever
- A Personal Recession Toolkit
- Here's what the latest inflation report means for your money
- Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
- Video: In California, the Northfork Mono Tribe Brings ‘Good Fire’ to Overgrown Woodlands
Ranking
- Bodycam footage shows high
- What tracking one Walmart store's prices for years taught us about the economy
- These Are the Black Beauty Founders Transforming the Industry
- Five Climate Moves by the Biden Administration You May Have Missed
- Head of the Federal Aviation Administration to resign, allowing Trump to pick his successor
- How the pandemic changed the rules of personal finance
- Maya Rudolph is the new face of M&M's ad campaign
- Maya Rudolph is the new face of M&M's ad campaign
Recommendation
'Most Whopper
Here’s Why Issa Rae Says Barbie Will Be More Meaningful Than You Think
M&M's replaces its spokescandies with Maya Rudolph after Tucker Carlson's rants
3 dead, multiple people hurt in Greyhound bus crash on Illinois interstate highway ramp
Civic engagement nonprofits say democracy needs support in between big elections. Do funders agree?
Read Jennifer Garner's Rare Public Shout-Out to Ex Ben Affleck
Let Your Reflection Show You These 17 Secrets About Mulan
For a Climate-Concerned President and a Hostile Senate, One Technology May Provide Common Ground