Johnson & Johnson offers to pay US$5.5bn to settle talc cancer lawsuits

Johnson & Johnson has offered an estimated US$5.5bn settlement covering about 76,000 claims that its talc products caused ovarian cancer.

The proposed agreement could end a contentious legal dispute over the company’s baby powder and other talc-based products that has lasted around a decade.

Johnson & Johnson said the settlement covers claims consolidated in a federal court in New Jersey and related cases in state court.

The claims represent nearly all the remaining talc cases against the US multinational, according to the company.

Johnson & Johnson has previously settled most claims alleging that its talc contained asbestos and caused mesothelioma.

Mesothelioma is a rare cancer affecting the lining of organs, most commonly the lungs, and is usually linked to asbestos exposure.

Law firms representing claimants confirmed the proposed deal, describing it as a good resolution after around 10 years of litigation.

The agreement must be accepted by 95 per cent of ovarian cancer claimants in state or federal court before it becomes final.

Erik Haas, vice-president of litigation at Johnson & Johnson, said the claims were “meritless” and that the company was willing to settle to bring the litigation to a close.

“While we are confident the company would have ultimately prevailed with further litigation, as it has in the vast majority of cases tried to date, this resolution allows the company to put this matter behind it and remain focused on its mission to develop medicines and devices that save lives,” Haas said.

The company expects to pay US$3bn in 2027, with further payments due in 2028.

The deal could be worth more, depending on how many people take part in the settlement.

Chris Seeger, a lawyer representing around 2,500 clients with talc claims who helped negotiate the agreement, said Johnson & Johnson could ultimately pay US$7bn or more.

The settlement assigns specific values to qualifying ovarian cancer claims but does not cap the company’s total payout.

“We got a fair settlement, and our clients are going to be happy with it,” Seeger said.

Johnson & Johnson reached the agreement after a series of court victories, including wins in individual trials and successful efforts to disqualify claimants’ lawyers from the litigation.

The company also secured court rulings against experts used by claimants to support their cases.

A federal judge last week questioned whether individual claimants could prove that talc had specifically caused their ovarian cancer.

Johnson & Johnson has consistently denied that its talc products caused cancer, maintaining that the products were safe and did not contain asbestos.

The company stopped selling talc-based baby powder in the US in 2020 and switched to a cornstarch-based product.

Litigation resumed in March 2025 after being paused for more than three years while Johnson & Johnson pursued a bankruptcy strategy known as the “Texas two step”.

The company filed three bankruptcies through a shell-company subsidiary in an attempt to settle the cases. Each bankruptcy was dismissed.

Before the bankruptcy attempts, Johnson & Johnson had a mixed record in talc trials.

These included a multibillion-dollar verdict for 22 women who said baby powder caused their ovarian cancer, alongside trials won by Johnson & Johnson and other verdicts later reduced on appeal.

Unlike the proposed bankruptcy settlements, the latest agreement applies only to existing claims and does not cover future lawsuits.

Seeger said excluding future claims made more money available for current claimants than the bankruptcy proposal and would allow all claims to be paid within 18 months rather than over more than a decade.