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Home»Stock Market»J&J reaches sweeping talc deal that might finish decade of litigation
Stock Market

J&J reaches sweeping talc deal that might finish decade of litigation

EditorBy EditorJuly 28, 2026No Comments4 Mins Read
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J&J reaches sweeping talc deal that might finish decade of litigation
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Johnson & Johnson stated on Monday it might pay an estimated $5.5 billion to resolve tens of hundreds of lawsuits alleging its child powder and different talc merchandise ​trigger ovarian most cancers, in a landmark ​deal that might finish a contentious authorized ​battle that has dogged the corporate for a decade.

J&J stated the settlement covers about 76,000 claims, together with ones consolidated in federal court docket in New Jersey, and associated circumstances in state court docket, representing practically all the remaining talc claims towards the corporate.

J&J beforehand settled many of the circumstances alleging that ⁠its ‌talc contained asbestos and brought about mesothelioma.

Plaintiffs’ legislation corporations confirmed the deal on Monday, ⁠saying it was an excellent decision after a decade-long court docket battle. The deal should be accepted by 95% of the ovarian most cancers claimants in state or federal court docket earlier than it turns into ultimate.

J&J’s vp of litigation, Erik Haas, stated the claims had been “meritless” and that the corporate was prepared to settle so as to get closure.

“Whereas we ‌are assured the corporate would have in the end prevailed with additional litigation, because it has within the overwhelming majority of circumstances tried up to now, this decision permits the corporate to place this matter behind it and stay centered on its mission ​to develop medicines and gadgets that save lives,” Haas stated.

J&J expects to pay $3 billion in 2027, and it’ll make additional funds in 2028. However the deal may very well be price extra, relying on how many individuals take part within the settlement. Chris Seeger, an lawyer who represents about 2,500 shoppers with talc claims and helped negotiate the settlement, stated J&J may in the end pay $7 billion ⁠or extra.

The settlement assigns particular values to qualifying ovarian most cancers claims however doesn’t cap J&J’s complete payout, he stated. “We acquired a good settlement, and ‌our shoppers are going to be proud of it,” Seeger stated in an interview.

Deal comes after courtroom wins

J&J reached the settlement after a collection of wins in court docket, together with victories in particular person trials, profitable efforts to disqualify plaintiffs’ legal professionals from the litigation, and court docket rulings towards specialists that plaintiffs had used to show their circumstances in court docket. J&J gained a major court docket victory within the long-running authorized battle final ⁠week, when a federal choose solid doubt on particular person plaintiffs’ capability to show that talc particularly brought about their ovarian most cancers.

J&J has ⁠lengthy denied that its talc merchandise brought about most cancers, saying that talc was secure and didn’t comprise asbestos. ⁠The corporate stopped promoting talc-based child powder within the U.S. in 2020, switching to a cornstarch product.

The litigation resumed in March 2025, after being placed on maintain for greater than three years whereas J&J unsuccessfully pursued a technique ​referred to as the “Texas two step,” submitting three bankruptcies by way of a shell-company subsidiary ‌in an effort to settle the circumstances. Every chapter led to dismissal.

Earlier than the chapter makes an attempt, J&J had a blended file in talc trials, with a multibillion-dollar verdict in favor of twenty-two ladies who stated child powder brought about their ovarian most cancers. The corporate gained some trials outright and had different verdicts lowered on attraction.

Not like the proposed chapter settlements, Monday’s settlement applies solely to present claims and doesn’t handle future lawsuits. The exclusion of future claims made more cash ​accessible to present plaintiffs than the chapter proposal did, ‌and it additionally accelerates the funds so that every one claims might be paid inside 18 months as a substitute of being unfold out over greater than a decade, Seeger stated.

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