Johnson & Johnson Agrees to Massive Settlement

Johnson & Johnson Agrees to Massive Settlement

( – Johnson & Johnson (J&J) has faced massive legal troubles for the past several years. The company once sold a talcum powder-based baby powder that has become the subject of thousands of cancer claims. More than 40 state attorneys general also opened an investigation into the products. The company recently agreed to a settlement.

On Tuesday, June 11, J&J reached an agreement with the attorneys general in which the company would pay $700 million to 42 states and the District of Columbia. Florida, Texas, and North Carolina led the action.

In its concessions, the company permanently agreed to stop manufacturing, selling, and promoting its baby powder and other talc-based products in the US. Pending court approval of the agreement, the company will pay the settlement in four installments, with the first due by the end of July.

The company has not admitted to any wrongdoing and continues to maintain that all of its products, including its baby powder and other talc-based goods, are safe. However, it discontinued using talc in its baby powder last year, replacing it with corn starch. It also pulled talc-based products from the North American market in 2020.

Should the court approve the proposed settlement, California would receive the biggest payout, over $70 million. Texas is right behind at around $68 million and Florida and New York follow suit at $48 and $44 million, respectively.

J&J’s legal woes won’t end here, though. More than 60,000 cases are pending where claimants allege that the baby powder was directly responsible for their ovarian cancer or mesothelioma.

Then, there’s a class-action lawsuit that the company’s shareholders brought accusing Johnson & Johnson of fraudulently hiding the dangers of its products. The company has reportedly put aside $11 billion to handle those claims.

Two recent plaintiffs scored big wins, including an Oregon woman whom a jury awarded $260 million and the family of a deceased Illinois woman who sued and won a $45 million verdict.

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