J&J to settle 99.75% of talc lawsuits with $6.5B reorganization plan

Johnson & Johnson (J&J) is implementing a “plan of reorganization” to address 99.75% of over 60,000 talcum powder lawsuits filed against the company. This $6.5 billion settlement plan is intended to settle ovarian cancer claims, though talc-related mesothelioma lawsuits still pose a challenge for J&J. 

The company recently reported resolving 95% of mesothelioma lawsuits, but the remaining cases are still significant. For instance, on Monday, a jury in Portland, Oregon, awarded $260 million to a 49-year-old woman who alleged that her over 30-year use of Johnson’s Baby Powder led to her developing mesothelioma. 

Kyung Lee, a mother of three from Beaverton, Oregon, was diagnosed with incurable cancer in August 2023. Mesothelioma, which affects the lining of the lungs, is caused by asbestos exposure.  

“For years, Kyung and her family used Johnson & Johnson’s Baby Powder, not having any idea it could lead to a life-ending illness,” said Lee’s attorney, Ben Adams of Dean Omar Branham Shirley, to Business Wire. “Today, Ms. Lee was able to see justice and secure a future for her family after she is gone.” 

The jury's decision included $200 million in punitive damages and $60 million in compensatory damages. J&J’s legal chief, Erik Haas, announced that the company plans to “immediately appeal” and is “confident that the verdict will be reversed, like the majority of aberrant adverse verdicts that have no basis in the law or science.” 

J&J discontinued the talcum powder product in the United States in 2020 and now offers a cornstarch-based alternative. The company cites independent studies that show its talc does not contain asbestos or cause cancer. However, Lee’s attorneys argued during the trial that J&J continued selling the product despite knowing it contained asbestos. 

Although J&J has won the majority of talc-related cases, it has faced significant losses, such as a $2.1 billion verdict in Missouri awarded to 22 women who claimed the baby powder caused their ovarian cancer. 

J&J aims to reach a settlement with ovarian cancer claimants whose cases are consolidated in New Jersey. If 75% of plaintiffs agree, the settlement will resolve all the claims.