• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Johnson & Johnson to pay $6.5 billion to resolve nearly all talc ovarian cancer lawsuits in U.S.
Editor's Pick

Johnson & Johnson to pay $6.5 billion to resolve nearly all talc ovarian cancer lawsuits in U.S.

by May 4, 2024
by May 4, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Johnson & Johnson on Wednesday said it plans to pay $6.5 billion over 25 years to settle nearly all of the thousands of lawsuits in the U.S. claiming its talc-based products caused ovarian cancer, pending approval of the claimants.

Those cases have for decades caused financial and public relations trouble for J&J, which contends that its now-discontinued talc baby powder and other talc products are safe for consumers. About 99% of the talc-related lawsuits filed against J&J and its subsidiaries stem from ovarian cancer. 

The company recorded a charge of about $2.7 billion in the first quarter to raise its reserve for talc claims to about $11 billion.

The deal, pending approval by claimants, would allow J&J to resolve the lawsuits through a third bankruptcy filing of a subsidiary company, LTL Management. Courts have rebuffed J&J’s two previous efforts to resolve the lawsuits through the bankruptcy of that subsidiary, which was created to absorb the company’s talc liabilities.

J&J will begin a three-month voting period for claimants, in hopes of reaching a 75% support threshold needed for a bankruptcy settlement that would end the litigation entirely and prevent future lawsuits. Claimants did not have the opportunity to vote in LTL Management’s previous bankruptcy cases, J&J executives said on a call with investors on Wednesday.

J&J has the “significant support of the overwhelming majority of the claimants” based on conversations with their lawyers or representation, the executives added.

“We firmly believe this plan is in the best interest of claimants and should receive a favorable and immediate confirmation from the bankruptcy court,” said Erik Haas, J&J’s worldwide vice president of litigation, during the call.

He contended the settlement is a far better recovery for claimants than would be likely in a trial.

“As that track record shows, most of bearing claimants have not recovered, nor are they expected to ever recover anything at trial,” Haas said. “At the rate at which use cases have been tried, it would take decades to try the remaining cases meaning most claimants will never see their day in court.”

Still, litigation has resulted in some large verdicts for claimants. That includes a roughly $2 billion award in favor of 22 women who blamed their ovarian cancer on asbestos in J&J’s talc products.

Shares of J&J rose more than 2% in premarket trading Wednesday.

J&J said the remaining pending lawsuits relate to a rare cancer called mesothelioma and will be addressed outside of the new settlement plan. The pharmaceutical giant said it has already resolved 95% of mesothelioma lawsuits filed to date.

J&J noted on Wednesday that it has reached “final and comprehensive” settlements to resolve an investigation by a coalition of more than 40 states into claims the company misled patients about the safety of its talc baby powder and other talc-based products.

The company has also reached an agreement in principle to resolve claims brought by suppliers of its talc, which include Imerys Talc America, Cyprus Mines Corporation and their related parties.

This post appeared first on NBC NEWS
You Might Also Like
  • The U.S. economy rolls on, adds 303,000 jobs in March
  • 31 percent of all IoT SIMs were managed with third-party IoT CMPs at the end of 2021
  • Quectel Expands its 5G and GNSS Combo Antennas Portfolio to Advance Coverage and Location Services
  • AT&T, other phone companies sued over stolen nude images could face liability after court ruling
Share
0
FacebookTwitterPinterestWhatsapp

previous post
‘Stop caving to the woke mobs’: GOP ramps up attacks on vulnerable Dems amid anti-Israel campus unrest
next post
Skydance bid for Paramount hinges on Shari Redstone as special committee ends exclusive talks

You may also like

CVS is under pressure and considering a breakup. Here’s why...

October 5, 2024

American liquor exports hit record high in 2024, driven by...

April 25, 2025

Boeing’s crewed Starliner flight won’t return until at least August,...

July 26, 2024

The first Fed interest rate cut in years is on...

July 30, 2024

United Airlines tweaks frequent flyer program to reward credit card...

November 10, 2023

Actility Selects iBASIS and Sequans to Deploy LTE-M Solutions With...

March 3, 2023

Chick-fil-A is releasing its own entertainment app, with family-friendly shows...

October 21, 2024

Peloton announces Ford exec, founder of Apple Fitness+ Peter Stern...

November 1, 2024

Amazon says more packages are arriving in a day or...

May 1, 2024

Golf’s PGA Tour and LIV merger is the latest power...

June 9, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Inflation and $2,000 camps are creating...

    July 24, 2024

    Payroll panic, flash sales, shrugs: How...

    March 16, 2023

    DeepSeek hit with large-scale cyberattack, says...

    January 28, 2025
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here