Talcum Powder Manufacturer Pays Record High Settlements in Talc Lawsuit Decisions

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January 8, 2024 — In a major development, Johnson & Johnson (J&J) has tentatively agreed to pay approximately $700 million to resolve an investigation conducted by more than 40 US states. The investigation looked into claims that J&J wrongfully marketed its talc-based baby powder without warning consumers about potential health risks. The settlement aims to avert potential lawsuits alleging that J&J concealed any links between talc and various cancers. This agreement comes after two failed attempts by J&J to impose a settlement on former users through bankruptcy courts.

The Background

J&J, headquartered in New Brunswick, New Jersey, has faced a decade-long litigation over allegations of concealing health risks associated with its talc-based powders. The company’s stock price has been impacted significantly due to the ongoing litigation and the prospect of potential future cancer suits. As part of its strategy to address the mounting legal challenges, J&J had previously offered a $9 billion settlement to resolve all current and future claims related to its baby powder.

Settlement Details

The recent settlement of approximately $700 million is a significant step towards resolving the claims against J&J. The specific terms of the agreement are still being negotiated between J&J and representatives for the state attorneys general. However, both parties have reached an agreement on the approximate total amount. This settlement is separate from the lawsuits filed by the states of Mississippi and New Mexico, which are seeking higher settlements as they have already initiated litigation.

Legal Exposure and Allegations

J&J faces legal exposure beyond the claims made by the states involved in the settlement. The company is confronted with over 50,000 lawsuits alleging that its talc-based powders, including baby powder, contained asbestos and posed a cancer risk. While the majority of these claims relate to ovarian cancer, some also involve mesothelioma, a cancer associated with asbestos exposure. J&J maintains that its talc-based products do not cause cancer and that it has marketed its baby powder responsibly for more than a century.

Impact on Stock Price

The ongoing litigation and the potential financial impact from settlements have affected J&J’s stock price. Following news of the settlement, J&J’s shares experienced a slight decline in trading. The resolution of the talc investigation and subsequent settlements may help alleviate some of the uncertainties surrounding the company, potentially leading to a positive impact on its stock price.

State Lawsuits and Investigation

While only Mississippi and New Mexico have filed lawsuits against J&J over the marketing of its talcum powder, a joint investigation was launched by 42 states and the District of Columbia. Attorneys general from several states, including Arizona and North Carolina, have demanded information from J&J regarding its marketing practices. The settlement agreement being negotiated does not cover the ongoing lawsuits filed by Mississippi and New Mexico, which are pursuing higher settlements as they have already initiated litigation.

Future Outlook for J&J

The settlement reached by J&J to resolve the talc investigation is a significant development in the ongoing legal challenges faced by the company. While it marks progress in addressing the allegations of concealing health risks, J&J still faces numerous lawsuits related to its talc-based powders. The outcome of these lawsuits will determine the long-term impact on the company and its reputation. J&J continues to maintain its stance that its talc-based products are safe and do not cause cancer.

J&J’s Settlement Numbers.

Johnson & Johnson’s agreement to pay approximately $700 million to settle the talc investigation by more than 40 US states is a significant step towards resolving the legal challenges the company has faced. The settlement aims to address allegations that J&J wrongfully marketed its talc-based baby powder without warning consumers about potential health risks. While this settlement is a positive development for J&J, the company still faces numerous lawsuits related to its talc-based powders. The outcome of these lawsuits will shape the future of the company and its reputation in the healthcare industry.

Table 1: Settlement Details

Settlement Amount	Approx. $700 million
Lawsuits Covered	Multiple states
Allegations	Wrongful marketing, failure to warn about health risks
Ongoing Lawsuits	Mississippi, New Mexico
Legal Exposure	Over 50,000 claims related to talc-based powders

News: November 20, 2020 –Johnson & Johnson has been ordered by a New York state judge to pay $120 million in damages to a Brooklyn woman and her husband, after she blamed her cancer on asbestos exposure from using the company’s baby powder. The original amount was $325 million but was reduced in court. It includes $15 million of compensatory damages and $105 million of punitive damages, down from an original $25 million and $300 million, respectively.

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May 19, 2020.  Due to mounting lawsuits, Johnson & Johnson, the makers of popular baby powder have now halted all sales in the US. They are facing at least 16,000 lawsuits alleging the baby powder contains cancer causing asbestos, which the company denies.

JULY 26, 2020.  Last month (in June) a judge ruled that her court would not hear new Talcum Powder Cancer claims citing jurisdictional conflicts. Now the cases will be tried in Federal Civil Court, which may be generally viewed as a more plaintiff-favorable venue.*

The link between asbestos and various cancers has been well documented over the past 50 years. Industrial workers handling materials containing asbestos fibers have suffered greatly, acquiring serious and even terminal illnesses from lung cancer, to asbestosis and mesothelioma.

Who knew that talcum powder, marketed for its hygiene benefits to consumers worldwide for decades contained enough of this toxic asbestos to create a significant cancer risk?  Apparently, Johnson & Johnson was aware.

Last October, a woman who developed ovarian cancer after years of consistent talc use on or around her genitals won a $70 million lawsuit, where $65 million of the settlement was awarded as punitive damages. According to Law360, Johnson & Johnson had callously joked in emails about talc causing ovarian cancer in women who consistently used their product and even took steps to falsify medical records to hide the connection.

Two other lawsuits similar in nature saw Johnson & Johnson losing $72 million and $55 million respectively. Both again were women citing the link between their ovarian cancer diagnosis and their usage of talcum powder.

More recently, however, the talc lawsuit has grown even more deadly with claims that the talcum powder is responsible for mesothelioma, a very rare terminal cancer that is caused by exposure to asbestos. Previously associated almost exclusively with construction and factory workers, mesothelioma is now possible in trades where talcum powder is airborne, like barber shops.

Philip Depoian, 68, of West Hills, CA, was diagnosed with mesothelioma in 2015 claiming his exposure to asbestos over several decades while hanging out in his family’s barbershop beginning in 1948. No other exposure to asbestos could be found but the meso diagnosis was real. This opens up the talc claims now to both men and women.

Although the talcum powder lawsuit against Johnson & Johnson typically was for ovarian cancer in women and did not include other types of cancers in both men and women, talc claimants linking colon cancer, colo-rectal cancer, uterine cancer, and even testicular cancers may be just around the corner.

It’s clear that sustained exposure to asbestos found in talcum powder can be cancerous. Now that we understand that airborne talc can potentially cause lung cancer, asbestosis and mesothelioma if breathed there is a much wider range of possible ways a person could be exposed and suffer injuries. Even today, talc can be found to be used in plastics, ceramics, paint, paper, cosmetics, roofing, rubber and many other products.

If you have been diagnosed with mesothelioma or any other type of cancer that you believe could be the result of talcum powder exposure, call our law firm today. We have done our research and are well equipped to assist you and your family in this difficult time. We can help you deal with the impact that the cancer has on you and your family and will fight for your right to just compensation.

Contact Schmidt National Law Group today for a free case evaluation by calling 1-800-631-5656 or use the form at the bottom of this article.

*”An Empirical Examination of Attorneys’ Choice of Forum in Class Action Litigation,” Thomas E. Willging & Shannon R. Wheatman; Federal Judicial Center. 2005

Talc lawsuit claims and settlements page updated on January 8, 2024.