Johnson & Johnson (NYSE:JNJ) on Tuesday said it will pay $8.9 billion over the next 25 years to settle allegations that the company’s baby powder and other talc products caused cancer.
The company announced the proposed settlement in a securities filing. J&J’s subsidiary LTL Management also refiled for Chapter 11 bankruptcy protection after its first attempt was thwarted, the filing said.
More than 60,000 claimants have committed to support the proposed resolution, which would require approval in bankruptcy court, the filing added.
“Resolving this matter through the proposed reorganization plan is both more equitable and more efficient, allows claimants to be compensated in a timely manner, and enables the Company to remain focused on our commitment to profoundly and positively impact health for humanity,” said Erik Haas, J&J’s worldwide vice president of litigation, in a statement.
But J&J still pushed back on the talc allegations.
“The Company continues to believe that these claims are specious and lack scientific merit,” Haas added.
The company ended sales of its talc-based baby powder globally this year after it faced thousands of lawsuits from customers claiming its talc products caused cancer due to contamination with the carcinogen asbestos.
J&J spun off LTL management in October 2021 in a bid to reduce its losses from litigation and settlement. The company funneled its talc lawsuits to the subsidiary and immediately filed for bankruptcy protection.
JNJ shares $5.22, or 3.3%, to $163.71.
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