J&J’s Subsidiary Filed for Bankruptcy. Here’s What That Means for Baby Powder Lawsuits
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Tens of thousands of baby powder lawsuits are nearing a resolution as Johnson & Johnson kicked off a renewed attempt at completing its proposed settlement on Friday.
J&J’s Red River Talc unit filed for bankruptcy in Texas court, a necessary step to finalize the multi-billion-dollar settlement.
If approved, the proposal would cover lawsuits claiming that J&J’s talcum-based baby powder caused ovarian cancer in thousands of consumers. According to Reuters, the settlement is set to total around $8 billion and will be paid out over 25 years.
This is a significant step towards a conclusion to what has been a years-long battle between plaintiffs and the pharmaceutical giant. Claims that talc-based powder causes cancer go back decades, with talc first found embedded in ovarian cancer tumors over 50 years ago.
J&J stopped selling its talcum powder in the United States in 2020.
The court will still need to approve the bankruptcy plan in order for the settlement to be completed. This settlement does not include lawsuits claiming that J&J baby powder contained asbestos and caused mesothelioma.
Past Baby Powder Settlement Attempts by J&J Fell Short of Approval
While the proposed settlement’s approval would be a key milestone in the ongoing talcum powder litigation, it is not yet a complete guarantee.
J&J is employing a Texas two-step bankruptcy strategy, where a subsidiary assumes its lawsuit liabilities and files for Chapter 11 in its place. This isn’t the first time that J&J has attempted this strategy and the company has not yet seen success in front of a judge.
J&J’s attempt to complete an $8.9 billion settlement in 2023 was shut down, with an appeals court upholding that decision just last month. But J&J could have more luck on this attempt, in part possibly due to more significant support among plaintiffs.
75% of plaintiffs needed to approve the settlement for it to move forward, a figure that is believed to have been reached in a secret ballot that ended in July. Since then, J&J has also gained the support of a plaintiffs’ lawyer representing 12,000 cases after adding an additional $1.1 billion to the settlement offer in early September.
Links Between Ovarian Cancer and Talcum Powder Span Decades
There are nearly 58,000 active lawsuits claiming that J&J’s baby powder is responsible for the development of cancer in its customers.
Research over the years has suggested a link between talc and ovarian cancer, with the International Agency for Research on Cancer classifying the mineral as a probable carcinogen in July. An American Cancer Society study also listed talcum powder as a possible risk factor for ovarian cancer.
While the pending settlement only covers ovarian cancer claims – which make up the majority of talc litigation – plaintiffs have also filed many lawsuits claiming that J&J baby powder contained asbestos that led users to develop mesothelioma.
J&J recalled over 30,000 bottles of its baby powder in 2019 after asbestos was found in a test sample.
In addition to its proposed settlement with plaintiffs, J&J also agreed to a $700 million settlement with 42 states related to its talcum powder marketing earlier this year.
Editor Lindsay Donaldson contributed to this article.