Image Credits - Moneycontrol
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Johnson & Johnson is actively working to finalize a $6.48 billion settlement deal related to lawsuits alleging that its talc-based products, including baby powder, cause cancer. The New Brunswick, New Jersey-based company is negotiating with plaintiffs’ lawyers who have opposed the settlement and is attempting to resolve disputes with holdouts to move forward with the deal.
The company has paused the voting process to allow more time for plaintiffs’ attorneys to discuss the settlement with their clients. Erik Haas, Johnson & Johnson’s global vice president of litigation, announced the extension of the certification timeline, noting, “We have agreed to a short extension.” This will give plaintiffs’ attorneys additional time to discuss the plan with their clients and encourage them to support the settlement.”
To proceed with the settlement, Johnson & Johnson plans to place a subsidiary into bankruptcy, provided that at least 75% of claimants agree to the settlement proposal. This strategy aims to resolve all existing talc-related lawsuits and prevent future claims related to the alleged health impacts of Johnson & Johnson’s products, which include ovarian cancer and other illnesses.
Attorney Andy Birchfield, a prominent opponent of the bankruptcy strategy, has shown willingness for further negotiations but remains prepared to challenge another Chapter 11 filing if needed. The legal battle involves over 62,000 plaintiffs who argue that Johnson & Johnson’s talc products were contaminated with asbestos, leading to cancer diagnoses.
In May, Johnson & Johnson announced its plan to settle for $6.475 billion to address a range of lawsuits related to ovarian cancer from talc litigation. The company has already paid approximately $5 billion to settle claims involving mesothelioma and other cancers, as well as allegations of illegal marketing practices.