Johnson & Johnson Strikes $5.5 Bln Talc Settlement Deal, Subject To 95% Claimant Approval
(RTTNews) – Johnson & Johnson (JNJ) on Monday announced that it has reached an agreement to resolve the remaining talc litigation with the plaintiff firms leading the federal Multi-District Litigation (MDL) and related state court proceedings.
The resolution includes a $5.5 billion commitment to settle the remaining ovarian cancer claims and making the first payment of up to $3 billion in 2027, with the rest beginning in 2028.
For more than 15 years, tens of thousands of people sued Johnson & Johnson, alleging that its talc-based baby powder caused ovarian cancer. Meanwhile, Johnson & Johnson has consistently denied these claims, saying its products are safe and do not cause cancer.
However, the settlement is conditioned on lead plaintiff firms representing the people suing Johnson & Johnson agreeing to it, and those law firms representing at least 95% of all the remaining lawsuits pending both in state and federal court.
J&J said the settlement covers about 76,000 claims. The company still maintains that these claims lack scientific merit and calls it a “meritless 15-year litigation”.
Commenting on the proposed settlement, Erik Haas, Worldwide Vice President of Litigation, Johnson & Johnson, said: “In a watershed moment, the court thereafter ordered plaintiffs to show why the remaining claims should not be dismissed, confirming what we have maintained for years: that these claims lack scientific merit and were sustained only by unreliable expert opinions that could not survive rigorous judicial review.”
JNJ has traded between $164.23 and $269.43 over the last year. JNJ closed Monday’s trade at $265.95, up 0.97%.
In the overnight market, JNJ is up 0.96% to $268.50.
For more biotechstock news visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
