Johnson & Johnson agrees to $5.5 billion talc lawsuit settlement

MUMBAI: After years of legal dust refusing to settle, Johnson & Johnson is hoping a multi-billion-dollar deal will finally clear the air. The healthcare giant has agreed to pay an estimated $5.5 billion to resolve tens of thousands of lawsuits alleging that its talc-based baby powder and other products caused ovarian cancer, marking one of the largest mass tort settlements in the company’s history.

According to a Reuters report, the proposed agreement covers around 76,000 existing lawsuits pending in federal and state courts across the United States. If approved, it would resolve nearly all remaining ovarian cancer-related talc claims, while earlier settlements have already addressed most lawsuits involving mesothelioma.

The settlement, however, is not yet final. It requires approval from at least 95 per cent of eligible claimants before it can take effect.

Johnson & Johnson reiterated that the allegations lack scientific merit and stressed that the agreement does not amount to an admission of liability. The company said it opted for the settlement to bring years of costly litigation to a close and allow it to focus on its core healthcare business.

Under the proposed payment schedule, Johnson & Johnson expects to pay around $3 billion in 2027, with the remaining amount to be disbursed during 2028. The final payout could increase if more claimants ultimately join the agreement.

Lawyers representing plaintiffs described the proposal as a significant breakthrough after years of courtroom battles. They said the settlement establishes compensation values for qualifying claims while also providing scope for additional payments should participation exceed current estimates.

The agreement follows a series of legal developments that strengthened Johnson & Johnson’s position in court. Recent rulings have favoured the company on questions surrounding the scientific evidence linking talc products to ovarian cancer. Last week, a federal judge reportedly questioned whether individual plaintiffs could conclusively establish that talc was responsible for causing their cancers.

For years, Johnson & Johnson has consistently denied that its talc products contained asbestos or caused cancer. The company stopped selling talc-based baby powder in the United States in 2020, replacing the product with a cornstarch-based formulation.

Between 2021 and 2025, the company made several attempts to resolve the litigation through bankruptcy proceedings involving a subsidiary. Those efforts were rejected by US courts, forcing the lawsuits back into the conventional legal system.

Unlike the earlier bankruptcy proposals, the latest agreement applies only to existing ovarian cancer claims and does not cover future lawsuits. If the required claimant approval is secured, the settlement could finally draw a line under one of the most closely watched product liability disputes in the global healthcare industry although it is unlikely to end the broader debate over corporate accountability, product safety and mass litigation in the pharmaceutical sector.