US pharmaceutical giant Johnson & Johnson on Tuesday proposed an $8.9 billion settlement to resolve years-long lawsuits claiming that its talcum powder products caused cancer.
Under a proposal announced Tuesday, a J&J subsidiary will re-file for Chapter 11 bankruptcy protection and seek court approval for a plan that would result in one of the largest product-liability settlements in U.S. history.
The New Jersey-based company said the proposed settlement, which still needs court approval, “will equitably and efficiently resolve all claims arising from cosmetic talc litigation.”
Johnson & Johnson is facing over 40,000 lawsuits from customers all over the world who have alleged that the talc-based baby powder manufactured by the pharma major caused cancer, while some have even claimed that the baby product contained cancer-causing asbestos.
The claims contributed to drop in J&J’s sales of baby powder, prompting the company to stop selling its talc-based products in 2020. Last year, J&J announced plans to cease sales of the product worldwide.
(With Agency Inputs)