Johnson & Johnson agrees to $700 million settlement over talc products
Johnson & Johnson has agreed to a $700 million settlement with 42 US states and Washington, DC, over allegations of misleading consumers about the safety of its talc-based products. The company maintains that its products are safe and asbestos-fre...

Details of the Allegations
The settlement addresses accusations that Johnson & Johnson's talc products, which have been sold for over a century, contained asbestos and led to ovarian cancer and mesothelioma. Despite the settlement, the company has not admitted to any wrongdoing and continues to assert that its talc products are safe and asbestos-free.
Statements from Attorneys General
Florida Attorney General Ashley Moody emphasized the significance of the settlement, stating, "This is a major advancement for consumer product safety." New York Attorney General Letitia James remarked, "No amount of money can undo the pain caused by Johnson & Johnson's talc-laced products, but today families can rest assured that the company is being held accountable for the harm it caused."
Legal Battles and Financial Strategies
Johnson & Johnson has faced approximately 61,490 lawsuits related to its talc products, most of which involve women diagnosed with ovarian cancer. Some plaintiffs also have mesothelioma, a cancer attributed to asbestos exposure. In an effort to manage the litigation, J&J created a subsidiary, LTL Management LLC, to handle talc liabilities and sought bankruptcy protection twice, both of which were rejected by the courts.
On May 1, Johnson & Johnson proposed a $6.48 billion settlement to resolve most of the litigation through a third bankruptcy filing. The company has set aside an $11 billion reserve to cover all talc liabilities. Erik Haas, J&J's worldwide vice president of litigation, said, "The company continues to pursue several paths to achieve a comprehensive and final resolution of the talc litigation."
Withdrawal of Talc-Based Products
In 2020, Johnson & Johnson withdrew its talc-based baby powder from the North American market and globally transitioned to corn starch as the primary ingredient. The company reiterated that its products are asbestos-free and safe for use.
Ongoing Litigation and Future Plans
Johnson & Johnson continues to address claims from those who do not wish to participate in the proposed bankruptcy resolution through litigation or settlement. "We will continue to address the claims of those who do not want to participate in our contemplated consensual bankruptcy resolution through litigation or settlement," Haas added.
A summary of studies published in January 2020, covering 250,000 women in the United States, did not find a statistical link between the use of talc on the genitals and the risk of ovarian cancer.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.