Johnson & Johnson Nods To $700 Million Settlement In Talc Baby Powder Investigation

Johnson & Johnson has agreed to pay $700 million to settle an investigation by over 40 states. The probe is related to allegations that the company provided false details to consumers regarding the safety of its talc baby powder and other talc-based products.

Reuters

Confirming the settlement, Johnson & Johnson stated to CNBC, "This settlement does not resolve the multitude of consumer lawsuits, some of which are slated for trial this year, claiming that these products caused cancer."?

Johnson & Johnson contends its products are safe??

Despite facing financial and public relations challenges for decades, Johnson & Johnson maintains that its talc-based products, including the now-discontinued talc baby powder, are safe.

The company has reached a settlement as part of its broader strategy to address the legal and financial consequences of the ongoing talc litigation.?

CFO Joseph Wolk

In an interview with The Wall Street Journal, CFO Joseph Wolk affirmed the company's commitment to achieving a comprehensive and definitive resolution of the talc litigation.

42 states, Washington, D.C. probing Johnson & Johnson's talc products

In October of last year, Johnson & Johnson revealed in a securities filing that 42 states and Washington, D.C. had initiated a joint investigation regarding the marketing of its talc-based products.?

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Recently, the company agreed to pay a settlement of $700 million, which is significantly higher than the approximately $400 million it reserved in the previous year to settle consumer protection claims in US states.

Unsuccessful attempts at filing for Chapter 11 bankruptcy protection

Johnson & Johnson has made two unsuccessful attempts to transfer liabilities into a subsidiary named LTL Management and file for Chapter 11 bankruptcy protection.?

However, lower courts have denied LTL Management bankruptcy protection. J&J is now seeking Supreme Court intervention to overturn these rulings.?

In its latest failed attempt to file for bankruptcy, the company proposed to pay $8.9 billion to claimants who have been affected by its talc-based baby powder. The company also ceased global sales of the product last year.

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