Johnson & Johnson, the world's largest pharmaceutical company, has proposed a $8.9 billion settlement...
Digital Desk: Johnson & Johnson, the world's largest pharmaceutical company, has proposed an $8.9 billion settlement to resolve lawsuits dating back more than 25 years alleging that the company's baby powder and other cosmetic talc products caused cancer.
In a securities filing, the company disclosed that its subsidiary, LTL Management, Inc., would voluntarily file for Chapter 11 bankruptcy once more to address the claims. The business maintains its belief that the talcum powder products are safe and claims that the filing is not an admission of any wrongdoing.
According to the release, Johnson & Johnson and its other affiliates did not seek bankruptcy protection and will carry on with business as usual.
Erik Haas, vice president of litigation at Johnson & Johnson, said in a statement that the company "continues to believe that these claims are baseless and lack scientific merit." "However, as the Bankruptcy Court recognized, resolving these cases in the tort system would take decades and impose significant costs on [the company] and the system, with most claimants never receiving any compensation," the statement reads.
The announcement comes months after a federal appeals court decided in January that the company could not use the bankruptcy court to settle 38,000 lawsuits alleging that talc in its products caused ovarian cancer and mesothelioma.
The New Jersey-based business had declared at that time that it intended to appeal the decision.
However, in 2019, Johnson & Johnson recalled a shipment of baby powder after a sample tested positive for a trace quantity of asbestos.
The company stated that it would no longer use talc in its baby powder around the globe, instead substituting corn flour.
Leave A Comment