NEW YORK: Johnson & Johnson has confirmed it will offer as much as US$8.9bil (RM39.13bil) to settle thousands of claims that the company's talcum powder causes cancer, reported UPI.
The New Jersey-based multinational medical giant agreed to contribute a total of US$8.9bil over 25 years to resolve all current and potential future liabilities. That figure is US$6.9bil (RM30.34bil) higher than the company's previous attempts to resolve the situation.
The company's LTL Management subsidiary also re-filed for Chapter 11 bankruptcy, according to a filing with the US Securities and Exchange Commission.
Johnson & Johnson created the LTL subsidiary in 2021, specifically to handle the plethora of lawsuits against its popular baby powder.
Over 60,000 registered claimants are supporting the proposal, according to LTL. The deal would still need to be approved in federal bankruptcy court.
A US federal appellate court in January rejected the company's previous bankruptcy claim as it attempted to protect itself from thousands of lawsuits related to claims its talcum-based powder was contaminated with asbestos, a carcinogen.
At the time, a judge found neither Johnson & Johnson nor the LTL subsidiary met the requirements, saying only a putative debtor in financial distress is eligible to make a bankruptcy claim.
Lawyers representing plaintiffs applauded the move on Tuesday (April 4).
"This is the largest product liability settlement ever realised after a bankruptcy filing. Today, J&J committed US$8.9bil to fairly compensate these deserving women," attorney Mikal Watts, who represents the group TalcPowderJustice.com, said in a statement.
"Our job is to get our clients restitution for their injuries, and this settlement is the culmination of over a decade of fighting for justice."
Johnson & Johnson this year ended all international sales of its talc-based baby powder over cancer-causing claims. It initially said in 2020 it would end sales of the product.
It continued to deny wrongdoing Tuesday, despite the settlement offer.
"The company continues to believe that these claims are specious and lack scientific merit," Johnson & Johnson Worldwide Vice President of Litigation Erik Haas said in a statement.
Notwithstanding the lack of scientific validity to these claims, plaintiff trial lawyers continue to relentlessly advertise for talc claims, supported by millions of dollars of litigation financing, all in the hopes of a massive return on investment, LTL Chief Legal Officer John Kim said in a statement.
In an SEC filing, the company said it has already paid more than US$7.4bil in litigation costs in 2020 and 2021. – Bernama-UPI
