Johnson & Johnson said Monday that it has reached an agreement in principle to resolve its remaining US talc litigation, committing $5.5 billion under a proposed settlement that is contingent on at least 95% of remaining claimants agreeing to participate.
The company said the agreement with plaintiffs’ lawyers leading the federal multidistrict litigation and related state court cases follows a recent court ruling that questioned plaintiffs’ ability to prove its talc products caused individual cases of ovarian cancer.
Johnson & Johnson said the settlement would include an initial payment of up to $3 billion in 2027, with no additional payments due before 2028.
The health care company said it remains confident that its talc products are safe, do not contain asbestos and do not cause cancer, citing scientific studies and regulatory reviews.
It added that the agreement would bring an end to the 15-year litigation while allowing the company to focus on its pharmaceutical and medical technology businesses.
Erik Haas, Worldwide Vice President of Litigation at Johson & Johnson, described the lawsuits as “meritless” and said the settlement would allow the company to put the long-running litigation behind it.
“While we are confident the company would have ultimately prevailed with further litigation, as it has in the vast majority of cases tried to date, this resolution allows the company to put this matter behind it and remain focused on its mission to develop medicines and devices that save lives,” Haas said.