HQ Team
August 14, 2024: Johnson & Johnson (J&J) is nearing settlement of lawsuits alleging that its talc-based baby powder caused cancer. Over 75% of the claimants have voted in favour of a proposed $6.5 billion settlement.
Settlement proposal overview
The settlement aims to address claims that J&J’s talc-based products, particularly its iconic baby powder, have been linked to ovarian and other gynaecological cancers. The company is facing 21,800 cases in the US for its use of asbestos in its talcum powder and its carcinogenic properties. Talc’s mineral structure is similar to asbestos. The cosmetics industry in 1976 agreed to make sure its talc products do not contain detectable amounts of asbestos.
The settlement liability will in all likelihood be handled by its subsidiary created for this purpose. In October 2021, J&J created a subsidiary, LTL Management, to hold its talc liabilities and filed for Chapter 11 bankruptcy to halt all outstanding talc lawsuits.
In April 2023, J&J proposed an $8.9 billion trust fund through LTL Management to settle current and future talc claims, but the U.S. Court of Appeals rejected the plan for the Third Circuit.
This May J&J announced that it was willing to pay $6.48 billion in settlement for approximately 10,000 lawsuits alleging its talc products caused ovarian cancer.
In June 2024, J&J offered a $700 million settlement to 42 U.S. states and Washington, D.C. to resolve accusations that the company misled consumers about the safety of its talc-based products.
J&J’s Position
Clare Boyle, a spokesperson for J&J, declined to comment on the specific voting results. However, the company has previously maintained that its talc-based powders have never caused cancer and asserts that it has marketed its baby powder safely for over a century.
A U.S. government-led analysis of 250,000 women in a study released in 2020 found no strong evidence linking baby powder with ovarian cancer, though the study’s lead author called the results “very ambiguous.”
The Journal of the American Medical Association wrote in an editorial about the study that it was “overall reassuring”. It also added that the study was not definitive and a large comparable study was now not feasible as a similar number of women using talcum powder is not available now as most do not use powder for personal hygiene.
A 2024 study published in the Journal of Clinical Oncology found that the application of talc powder to the genital area was associated with an increased risk of ovarian cancer.
The FDA has noted that talc and asbestos can be found in close proximity in nature, and some raw talc may be contaminated with asbestos. Talc products may also contain phthalates, chemicals linked to ovarian cancer, and talc itself can cause inflammation, which is associated with cancer development
The New Brunswick New Jersey-based company has discontinued the sale of its Johnson &
Johnson baby powder in the US and Canada citing dwindling numbers due to misinformation. It has replaced it with a cornstarch-based alternative.
Legal landscape and challenges
Despite the favourable voting outcome, J&J’s settlement plan still faces significant legal hurdles. Plaintiffs opposing the terms of the settlement may challenge the proposal in court. However, with three-quarters of plaintiffs in favour, J&J’s subsidiary could seek to expedite a “pre-packaged” Chapter 11 bankruptcy filing in Texas, a state perceived as more business-friendly than New Jersey, where J&J is headquartered.
Financial Implications
Under the current settlement offer, J&J would pay $6.5 billion over 25 years to resolve both current and future claims related to ovarian and gynaecological cancers. This comes on the heels of approximately $5 billion already paid by the company to settle various claims associated with its talc products, including those related to mesothelioma
Most of the outstanding claims are consolidated before a federal judge in New Jersey, where pre-trial information exchanges are ongoing. The consolidated case is known as In Re Johnson & Johnson Talcum Powder Products Marketing, Sales Practices and Products Liability Litigation, 16-md-2738, in the U.S. District Court for the District of New Jersey.
