Johnson & Johnson Reaches Tentative Settlement Over Baby Powder Claims

Johnson & Johnson (J&J) has announced a tentative settlement to address claims that it misled consumers about the safety of its baby powder. The company’s CFO revealed that J&J will pay $700 million to settle claims from 42 states. This settlement, however, does not cover ongoing litigation from tens of thousands of consumer lawsuits, predominantly filed by women alleging that J&J's talc powder caused their ovarian cancer. There are currently 52,000 such lawsuits, with some expected to go to trial later this year.

Previously, J&J attempted to settle these personal injury lawsuits through bankruptcy court filings, offering up to $9 billion, but these attempts were rejected by a Judge. Despite the current settlement, significant litigation remains. The CFO noted that the $700 million payout aims to help close this chapter for the company, although the legal battles are far from over.

J&J has consistently maintained that its talc powder products are safe and do not cause cancer. Nonetheless, the company ceased selling talc-based powders in the US and Canada in 2020, replacing them with corn starch-based alternatives.