Johnson & Johnson announced Tuesday that it would pay $8.9 billion to resolve all allegations that talc in its baby powder and other products caused cancer.
That amount was more than quadruple what the company previously set aside to pay for its potential liability.
J&J subsidiary, LTL Management, filed for bankruptcy protection late Tuesday for a second time with the intent to present a reorganization plan containing the proposed settlement to a judge as soon as May 14, the subsidiary said in a court filing.
The $8.9 billion that the company would transfer to LTL Management would be payable over the next 25 years to resolve all current and future talc claims.
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That figure marks an increase over the $2 billion previously committed in connection with LTL Management’s initial bankruptcy filing in October 2021.
LTL Management also has secured commitments from over 60,000 current claimants that have filed lawsuits alleging harm from the talcum powder, to support a "global resolution on these terms."
J&J noted that neither the original filing from LTL Management nor this refiling is an admission of wrongdoing or an indication that the company has altered its position that its talcum powder products are safe.
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J&J and its other affiliates did not file for bankruptcy protection and will continue to operate their businesses as usual.
The company said in a release that it has "won the vast majority of cosmetic talc-related jury trials that have been litigated to date and reiterates that none of the talc-related claims against the company have merit." It added that while the claims are "premised on the allegation that cosmetic talc causes ovarian cancer and mesothelioma," more than four decades of studies support the safety of cosmetic talc.
"The Company continues to believe that these claims are specious and lack scientific merit," Erik Haas, worldwide vice president of litigation at Johnson & Johnson, said in a statement. "However, as the Bankruptcy Court recognized, resolving these cases in the tort system would take decades and impose significant costs on LTL and the system, with most claimants never receiving any compensation."
"Resolving this matter through the proposed reorganization plan is both more equitable and more efficient, allows claimants to be compensated in a timely manner and enables the Company to remain focused on our commitment to profoundly and positively impact health for humanity," he said.
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The claims contributed to a drop in sales of baby powder, prompting the company to halt selling its talc-based products in 2020. Last year, Johnson & Johnson announced plans to cease sales of the product worldwide.
The Associated Press and Reuters contributed to this report.
