J&J Talc Lawsuit Settlement: $700 Million Paid to States

Johnson & Johnson will pay $700 million to settle claims made by 42 U.S. states and Washington D.C. that the company falsely marketed its baby powders as being safe, when it allegedly caused cancer in thousands of people who used it, Reuters reports. 

The payment is the latest in the long running J&J talcum powder debacle, in which the company still faces lawsuits from around 60,000 people.

Florida, North Carolina, and Texas led the investigation into the pharmaceuticals giant, and following the settlement Florida Attorney General Ashley Moody said "this is a major advancement for consumer product safety." 

However, J&J did not admit any wrongdoing as part of the settlement and continues to deny its products caused any harm.

J&J Still Faces Thousands of Cancer Lawsuits Despite Settlement

Despite this payout, J&J is still well in the midst of legal action over the talc products that consumers say contained cancer-causing asbestos, and it is currently trying to bring to an end claims by around 61,490 people through a bankruptcy process.  

Most of the people behind the claims are women who were diagnosed with ovarian cancer after years of talcum powder use. Some other claimants were diagnosed with mesothelioma, a cancer linked to asbestos.

The company has continued to maintain its products were safe, but last year it switched from selling talc-based powders to using cornstarch as the main ingredient.

Bankruptcy Gambit: J&J's Controversial Strategy to End Talc Litigation

J&J is now on its third attempt at resolving the consumer class action lawsuits through a bankruptcy move called the “Texas Two-Step,” where it moves its talc liabilities into a separate company and declares bankruptcy of that company. As part of the bankruptcy, plaintiffs in the cases have been offered a $6.48 billion settlement to cease legal action.

J&J Worldwide Vice President of Litigation Erik Haas said in a statement: “The company continues to pursue several paths to achieve a comprehensive and final resolution of the talc litigation. 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.”

However, making things even more complicated, another class action lawsuit was filed against J&J's whole bankruptcy plan, arguing that J&J's plan is unfair and shouldn't be allowed. J&J now has to fight this new legal battle on top of convincing everyone to take their settlement offer.

Recent Jury Verdict Highlights J&J's Talc Powder Legal Woes

While that fight goes on, the company isn’t immune from facing up to the current legal battles making their way through the court system. Earlier this month, an Oregon jury slammed the company with a $260 million verdict in favor of a woman who claims their talcum powder caused her mesothelioma, a deadly cancer linked to asbestos contamination. 

While that was a win for the plaintiff, J&J's history in court is also a mixed bag where they've won some and lost some in talcum powder cancer lawsuits before. 

For now, it’s still to be seen how the final settlement offer will play out - both in popularity with plaintiffs and in its legality according to the court system.