A Johnson & Johnson subsidiary filed for bankruptcy in its third attempt to settle a vast majority of cases alleging its talc products caused cancer.
The $8 billion settlement plan would resolve tens of thousands of ovarian cancer cases. The subsidiary has unsuccessfully tried twice to settle the cases through bankruptcy, but this time J&J said it has the support of more than 83% of claimants. The company recently raised the settlement amount by $1.1 billion, plus another $650 million for legal fees sought by plaintiffs’ attorneys.
“The overwhelming support for the plan demonstrates the company’s extensive, good-faith efforts to resolve this litigation for the benefit of all stakeholders,” Erik Haas, J&J’s worldwide VP of litigation, said Friday in a news release. “This plan is fair and equitable to all parties and, therefore, should be expeditiously confirmed by the bankruptcy court.”
The initial proposal would have given claimants $6.5 billion over 25 years, or more than $8 billion when accounting for interest on future payments. After negotiating with claimants’ lawyers, that figure is now $8 billion over 25 years, or $10 billion when accounting for interest.
In its release on Friday, J&J continued to deny the allegations, maintaining that the cancer claims “have been rejected by independent experts as well as governmental and regulatory bodies for decades.” J&J stopped manufacturing its talc products in the US in 2020, but insisted the decision was business-related.
Richard Golomb, who represents more than 1,600 ovarian cancer claimants, told Endpoints News on Monday that he continues to oppose the plan.
“They are not in financial stress and are abusing the bankruptcy as a litigation strategy and to avoid accountability,” Golomb said. “For those of us who have been in the trenches for more than 10 years, we will continue to fight on to get fair and reasonable values for our clients.”