Why Johnson & Johnson agreed to pay $5.5 billion despite denying cancer claims

Johnson & Johnson has agreed to pay an estimated $5.5 billion to settle tens of thousands of lawsuits alleging that its baby powder and other talc products caused ovarian cancer, saying it wants to bring a long-running legal battle to a close even as it continues to deny the claims. The proposed settlement covers about 76,000 existing claims in federal and state courts in the United States and will become final only if 95% of the ovarian cancer claimants accept it.

The agreement follows more than a decade of litigation, multiple trials and appeals, and three unsuccessful bankruptcy attempts by the company. Plaintiffs' law firms confirmed the deal on Monday and said it was a fair resolution after a lengthy court fight. J&J said the claims were meritless, but added that the settlement would allow it to move on from the dispute.

J&J vice president of litigation Erik Haas said the company was settling to get closure.

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“While we are confident the company would have ultimately prevailed with further litigation, as it has in the vast majority of cases tried to date, this resolution allows the company to put this matter behind it and remain focused on its mission to develop medicines and devices that save lives,” Haas said.

J&J said it expects to pay $3 billion in 2027, with further payments in 2028, though the total value could rise depending on how many people join the settlement.

Chris Seeger, a lawyer representing about 2,500 clients with talc claims and one of those who helped negotiate the agreement, said J&J could ultimately pay $7 billion or more. He said the settlement assigns specific values to qualifying ovarian cancer claims but does not cap the company’s total payout.

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The lawsuits alleged that women developed ovarian cancer after years of using Johnson & Johnson’s baby powder and other talc-based products. Many plaintiffs also said the talc contained asbestos. J&J has long denied that its talc products caused cancer and has maintained that talc was safe and did not contain asbestos.

The company stopped selling talc-based baby powder in the US in 2020 and switched to a cornstarch product. It had previously settled most cases alleging that its talc contained asbestos and caused mesothelioma.