American pharmaceutical giant Johnson & Johnson on Wednesday unveiled a plan to end civil lawsuits in a talc case accused of causing cancer, under which it is prepared to pay around $6.5 billion.
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“This plan is the culmination of our consensual resolution strategy announced in October,” explained Erik Haas, J&J vice president of legal affairs, quoted in a press release.
“Since that date, the group has worked with the lawyers representing the vast majority of plaintiffs to find a solution to this dispute, which we anticipate with this plan,” he said.
Under the plan, J&J agreed to pay approximately $6.475 billion over twenty-five years for complaints related to ovarian problems (99.75% of current complaints).
The other complaints are related to mesothelioma, nicknamed “asbestos cancer,” and are treated separately. The group specifies that 95% of them have already found a solution.
The proposed plan provides for a three-month period during which plaintiffs will be informed of its existence. It will be validated if 75% accept it.
The group specifies that the plaintiffs’ lawyers who collaborated in its development “support” it.
In electronic trading before the opening of the New York Stock Exchange, J&J shares rose 2.87%.
Its talc is accused of containing asbestos and causing ovarian cancer. Which he continues to refute, even though he has withdrawn it from the North American market.
“The complaints related to talc against the group demonstrate the incredible impact of baseless lawsuits launched against American companies and the extreme judgments obtained by the plaintiffs,” denounced Mr. Haas, denouncing the “distortion of scientific studies by a science junk”.
A summary of studies published in January 2020 and 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.
In the 1970s, concern arose about the contamination of talc by asbestos, often close in nature to the ores used to make talc.
The group proposed an $8.9 billion settlement in April 2023, to which more than 60,000 plaintiffs had given the green light. But a bankruptcy judge threw it out.
At the same time, Johnson & Johnson announced on January 23 an agreement in principle with a consortium of prosecutors from 43 states in the United States, in the context of this same talc affair.
No amount was officially indicated but American media reported at the time as much as $700 million.
