Johnson & Johnson (J&J) is actively negotiating with plaintiffs’ attorneys who oppose its proposed $6.48 billion settlement over lawsuits claiming its talc products caused cancer. The company is seeking to resolve objections and gain full support for the deal.
J&J plans to finalize the settlement through the bankruptcy of a subsidiary, after its earlier settlement attempts were rejected twice by federal courts. The company reports that the majority of claimants back the settlement but has paused the vote count to allow additional time for discussions with opposing plaintiffs.
Erik Haas, J&J’s worldwide vice president of litigation, confirmed the extension of the certification timeline to facilitate these negotiations. “This extension will enable plaintiffs’ attorneys to consult with their clients about supporting the plan,” Haas said.
Andy Birchfield, a leading attorney opposing J&J’s bankruptcy settlement, welcomed the negotiations but expressed readiness to challenge another Chapter 11 filing. “Our goal is to secure fair compensation for ovarian cancer victims promptly. If J&J is showing a willingness to negotiate, that is positive,” Birchfield stated. “However, we will continue to resist another bankruptcy filing and believe it will ultimately fail.”
J&J aims to secure votes from at least 75% of talc claimants to proceed with its subsidiary’s bankruptcy filing. The proposed settlement would resolve all current and future lawsuits related to ovarian cancer claims against J&J’s talc products and prevent new lawsuits.
The company faces legal action from over 62,000 plaintiffs who allege that J&J’s baby powder and other talc products, contaminated with asbestos, caused ovarian and other cancers. J&J denies these allegations, asserting that its products are safe, asbestos-free, and not cancer-causing.
The current settlement focuses on claims related to ovarian and gynecological cancers, building on a prior settlement for mesothelioma cases linked to asbestos. By using a subsidiary’s bankruptcy, J&J aims to consolidate all claims into a single settlement without filing for bankruptcy itself. Bankruptcy judges can enforce such settlements, halting all related lawsuits and prohibiting new claims.
Without a bankruptcy settlement, any agreement with some claimants would still leave room for holdouts and future plaintiffs to sue, potentially exposing J&J to significant financial risks. While J&J has won many ovarian cancer cases, it has also faced substantial verdicts, including a $2.12 billion judgment for 22 women who linked their ovarian cancer to J&J’s talc.
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