NEW BRUNSWICK – Johnson & Johnson (J&J) has agreed to pay $700 million to resolve an investigation by 42 U.S. states and Washington, D.C., into its marketing of baby powder and other talc-based products. The states alleged that J&J misled consumers about the safety of its talc products, which have been linked to cancer.
The settlement, announced on Tuesday, concludes charges that J&J deceived consumers into believing its talc products were safe, despite selling them for over a century. J&J has since discontinued the sale of talc-based baby powder globally, opting for corn starch as a replacement.
While J&J did not admit wrongdoing in the settlement, it has consistently maintained that its talc products are safe and do not cause cancer. The company reached a settlement in principle with the states, led by Florida, North Carolina, and Texas, in January.
“This is a major advancement for consumer product safety,” Florida Attorney General Ashley Moody said in a statement.
Despite this settlement, J&J still faces tens of thousands of talc lawsuits from individuals claiming harm from the products, as well as a class action accusing the company of fraudulently concealing the dangers of talc from shareholders. As of March 31, approximately 61,490 people were suing J&J over talc-related issues, primarily women with ovarian cancer and a smaller number with mesothelioma.
J&J has attempted to resolve the litigation twice by filing for bankruptcy through a subsidiary created to manage its talc liabilities, but both attempts were unsuccessful. On May 1, the company proposed a $6.48 billion settlement to resolve most of the litigation through a third bankruptcy filing and has set aside an $11 billion reserve to cover all talc liabilities.
Erik Haas, J&J’s worldwide vice president of litigation, stated on Tuesday, “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.”
This settlement marks a significant development in the ongoing legal battles surrounding J&J’s talc products, but the company still faces numerous challenges in resolving the remaining claims.
