Johnson & Johnson offers $5.5bn to settle baby powder cancer lawsuits

The proposed landmark deal would cover about 69,000 cases and draw a line under a legal battle that has dogged the New Jersey healthcare giant for years, BBC News reports.

What the baby powder settlement covers

The proposal must be accepted by law firms representing 95% of the ovarian cancer claims in State and Federal courts before it can move forward. Under the offer, J&J would pay up to $3bn in 2027, with no more payments coming before 2028. The pharmaceutical giant continues to deny that its talc products cause cancer and has already reformulated its powder.

Lawsuits first began in 2009, with claimants arguing the talc was contaminated with cancer-causing asbestos. These large-scale cases are not alien to US courts, and major damages are often awarded in high-profile US injury cases.

According to Johnson & Johnson, this resolution allows the company to put this matter to bed so they can remain focused on its mission to develop medicines and devices that save lives.

That was the message from Erik Haas, J&J’s vice-president of litigation, who branded the allegations “meritless” but said the firm was willing to settle to end the matter. Liability for baby powder sold outside North America now sits with Kenvue, the consumer-health business spun off from J&J in 2022.

If enough claimants sign up, one of the longest-running product battles in US corporate history could finally be over.

Thousands of people are suing J&J and Kenvue in the UK for similar charges, though a settlement has yet to be reached.