Johnson & Johnson To Pay US$700mn To Settle Talc Investigation with 42 US States: Report
Moneylife Digital Team 12 June 2024
Johnson & Johnson (J&J) has agreed to pay US$700mn (million) to settle an investigation by 42 US states and Washington DC into its marketing of baby powder and other talc-based products blamed for allegedly causing cancer, says a news report.
According to a report from Reuters, the settlement resolves charges that J&J misled consumers into believing its talc products, which it sold for more than a century before stopping, were safe.
J&J did not admit wrongdoing in settling with the states, which were led by Florida, North Carolina and Texas, and has said its talc products are safe and do not cause cancer. The report says the company announced a settlement in principle in January.
"This is a major advancement for consumer product safety," Florida attorney general Ashley Moody said in a statement.
J&J still faces tens of thousands of talc lawsuits and a class action accusing the New Brunswick, New Jersey-based company of fraudulently hiding their dangers from shareholders, the report says.
As of 31 March 2024, about 61,490 people were still suing J&J over talc. Most were women with ovarian cancer, while a smaller number had mesothelioma, a type of cancer linked to asbestos.
J&J stopped selling talc-based baby powder globally last year, switching to cornstarch as the main ingredient. It has maintained that its products do not contain asbestos. The healthcare company has faced tens of thousands of lawsuits from consumers who allege its talc products, including the instantly recognisable brand of Johnson's baby powder, caused them to develop cancer.
"As part of a worldwide portfolio assessment, we have made the commercial decision to transition to an all cornstarch-based baby powder portfolio," the company said in a statement.
Reuters says that the company has twice tried to resolve the litigation by placing into bankruptcy a subsidiary it created to contain its talc liabilities, but the courts rebuffed both attempts.
On 1 May 2024, J&J proposed a US$6.48bn (billion) settlement to resolve most of the litigation through a third bankruptcy filing. It has set aside a US$11bn reserve to cover all talc liabilities, the report says
"The company continues to pursue several paths to achieve a comprehensive and final resolution of the talc litigation," Erik Haas, J&J worldwide vice president of litigation, said in a statement on Tuesday.
"We will continue to address the claims of those who do not want to participate in our contemplated consensual bankruptcy resolution through litigation or settlement," he added.
1 month ago
While USA Consumers get BILLIONS, out INDIAN Consumers get ZERO ! Neither GOI or our COURTS SUO MOTO or any so called Consumer Societies have taken JnJ to task for their Cancer causing products sold upto recently in India!
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