Johnson & Johnson Increases Proposed Talc Settlement Funding to $8.9 Billion
Johnson & Johnson announced on Tuesday that it would agree to increase settlement payments for talc-related lawsuits to $8.9 billion. This proposed settlement amount must be approved by a bankruptcy court before the company can begin paying out settlements to victims of asbestos-contaminated talc exposure. Tens of thousands of alleged victims have been filing lawsuits against the company for various types of cancer, including mesothelioma and ovarian cancer.
The company originally took action to settle these cases by setting up a subsidiary for asbestos liability known as LTL Management. LTL Management then declared bankruptcy days after its formation. This highly criticized maneuver is known to the legal community as the “Texas two-step,” which corporations use to reduce legal exposure.
Johnson & Johnson still plans to use the company to manage contaminated talc liability. They also continue to deny any wrongdoing, though there is evidence that executives knew about asbestos exposure linked to its talc products for decades.
Attorneys will be able to apply for settlements on their clients’ behalf if the $8.9 billion deal is approved.
Associated Press. Johnson & Johnson proposes paying $8.9 billion to settle talcum powder lawsuits. NPR. April 2023.
Bendix A and Wile R. Women suing J&J await their day in court after the company failed to get talc cases moved to bankruptcy court. NBC News. February 2023.
Girion L. Johnson & Johnson knew for decades that asbestos lurked in its Baby Powder. Reuters. December 2018.
Hsu T. Johnson & Johnson Reaches Deal for $8.9 Billion Talc Settlement. The New York Times. Updated April 2023.
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