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Johnson & Johnson to pay $6.5 billion to settle talc-induced ovarian cancer lawsuit The agreement, he explains , would close all mesothelioma litigation through the bankruptcy filing of a subsidiary. J&J asked for three months to reach an agreement with all applicants, including future ones. Together, that’s 99% of talc-related lawsuits: 54,000 are in a single proceeding in New Jersey. Courts have rejected previous attempts to dismiss the cases. The company was not entitled to bankruptcy protection according to the judges because it was not in financial difficulty. J&J, which has always denied that its products contain asbestos and are carcinogenic, said the settlement had already been accepted by a majority of the plaintiffs.
Collection
J&J’s Erik Haas said canvassing votes before filing for bankruptcy could be successful. “So plaintiffs can vote, that’s the main difference,” he said on a call with investors. The settlement could gain support from 75% of plaintiffs and would put an end to litigation, including future lawsuits. Lawyers for the injured are divided: “I believe the plan announced today will bring peace to our clients and the thousands of women who have fought alongside us in the search for justice,” said JimOnder, who represents around 21,000 claimants and who supported the J&J’s previous bankruptcy proposal. Other lawyers said J&J is trying to “stuff the ballot box” by getting votes from lawyers who have not sued J&J or whose clients have types of gynecological cancer with no strong scientific link to talc.
For and against
Mike Papantonio, a lawyer opposed to the deal, said J&J had been “secretly soliciting law firms to accept their deal, promising quick pay for some opportunistic lawyers.” The proposed settlement would build on J&J’s settlements with about 95% of people who sued the company after developing mesothelioma, a rare form of cancer linked to asbestos exposure. J&J has set aside $11 billion for the lawsuits. In March, J&J got a new chance to challenge scientific evidence linking talc to ovarian cancer in litigation in federal court in New Jersey. The judge overseeing the cases said recent changes in the law and new scientific evidence require a new review, and asked J&J to submit new scientific arguments by the end of July.
The legal cases
J&J said it will continue to defend itself from lawsuits as it tries to drum up votes on the deal. The company said it has prevailed in 95% of ovarian cases attempted to date, including all those attempted in the past six years. The litigation resulted in some major verdicts for the plaintiffs, including a $2.12 billion settlement for 22 women who blamed their ovarian cancer on asbestos in J&J’s talc. Last month, J&J was ordered to pay $45 million in a mesothelioma case while winning in an ovarian cancer case. J&J has stopped selling talc-based baby powder in favor of cornstarch-based products, citing an increase in lawsuits and “misinformation” about the safety of the talc product.
