A sum of $700 million by Johnson & Johnson’s has been agreed which will settle a case against 42 US states and Washington, DC. The investigators examined the way that they advertised baby powder as well as other talc-based products which were accused of causing cancer.
It involves allegations that Johnson & Johnson lied to its customers about the safety of their talc-based products. Even before the company stopped selling them, these products had been on sale for over hundred years.
Also during this settlement with the states such as Florida, North Carolina and Texas among others, J&J has not admitted committing any offense. According to the company, there is no link between its talc and cancer because it is safe for use. They announced a settlement in principle in January.
“Consumer product safety has made a tremendous leap forward,” remarked Florida Attorney General Ashley Moody.
Johnson & Johnson faces numerous lawsuits related to talcum powders. By March 31st around 61,490 people have sued the company.
Most cases involve women who developed ovarian cancer while some plaintiffs acquired mesothelioma due to exposure to asbestos.
In order to stop sales worldwide last year, J&J replaced corn starch with it being the primary ingredient instead of talcum based baby powder. The manufacturer insists that its items do not contain asbestos.
To deal with lawsuits more efficiently, J&J established an affiliate company responsible for its talc liabilities and unsuccessfully tried filing for bankruptcy twice. In both instances courts dismissed this move.
On May 1st J&J proposed a third bankruptcy filling settlement of $6.48bn aiming at resolving most litigations against it. All costs arising from any issues related to using all forms of talcs have been allocated $11billion by this enterprise.
According to Erik Haas who serves as Vice President Litigation worldwide at J&J announced Tuesday in his statement; “The company continues to pursue several paths to achieve a comprehensive and final resolution of the talc litigation.”
“Continuing litigation or settlement is an option for those who do not wish to take part in our contemplated consensual bankruptcy resolution,” he added.
