Saturday 16 / November / 2024
New York: Pharmaceutical major Johnson & Johnson has proposed contributing $8.9 billion as a settlement to resolve lawsuits claiming that its talcum powder products caused cancer.
Johnson & Johnson said its subsidiary LTL Management LLC (LTL) has re-filed for bankruptcy protection to obtain approval of a reorganisation plan that it said will "equitably and efficiently resolve all claims arising from cosmetic talc litigation" against the company and its affiliates. In a statement, the company said it has agreed to contribute up to $8.9 billion, payable over 25 years, "to resolve all the current and future talc claims".
Earlier, it had proposed $6.9 billion over the $2 billion previously committed in connection with its subsidiary LTL's initial bankruptcy protection filing in October 2021.
"LTL also has secured commitments from over 60,000 current claimants to support a global resolution on these terms," the statement said on Tuesday.
It, however, clarified neither its original bankruptcy protection filing nor this re-filing is an "admission of wrongdoing, nor an indication that the Company has changed its longstanding position that its talcum powder products are safe".
Johnson & Johnson and its other affiliates did not file for bankruptcy protection and will continue to operate their businesses as usual, it said.
"The Company continues to believe that these claims are specious and lack scientific merit," said Erik Haas, Worldwide Vice President of Litigation, Johnson & Johnson.
"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 reorganisation 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," Haas added.
