Johnson & Johnson has tentatively agreed to pay $700 million to resolve an investigation into how it sells its baby powder, Chief Financial Officer Joseph Wolk told The Wall Street Journal. .
Mr Wolk said the agreement in principle was an “important step” for the company that would allow it to “reasonably set aside the issue”. The preliminary agreement only resolves an investigation launched by 42 U.S. states and Washington, D.C., into whether the company failed to warn about potential health risks when selling talc-based products, the magazine said. That's what it means.
The New Jersey-based consumer products giant is facing more than 50,000 lawsuits alleging that its now-discontinued talc products, including baby powder, have been linked to cancer in customers.
Tuesday's settlement does not apply to private plaintiffs' lawsuits against the company. In November, the company settled two lawsuits alleging mesothelioma related to asbestos in its talcum powder for an undisclosed amount. J&J claims its baby powder does not contain asbestos.
A 2018 ruling awarded a group of 22 Missouri women a total of $2.1 billion in damages, the largest amount ever awarded in a lawsuit. More cases are expected to go to trial this year, with the majority of plaintiffs being women with ovarian cancer.
So far, trials for cancer patients have had a mixed record. Last October, the New Jersey Court of Appeals threw out a $223 million verdict in a cancer case, arguing that scientific expert testimony should not have been presented to the jury, resulting in a landslide victory for J&J last October. brought about. The company previously told the Messenger that it “has won in the vast majority of cases tried because the claims are baseless and based on junk science.”
J&J filed two bankruptcy petitions seeking to dismiss the lawsuit, both of which were dismissed by a bankruptcy judge. The company said it would seek to appeal the decision.
“Consistent with the plan outlined last year, the company is pursuing several avenues to achieve a comprehensive and final resolution of the talc litigation,” Eric Haas, J&J's vice president of worldwide litigation, said in a statement to Reuters. We continue to pursue this.”
The company announced better-than-expected fourth-quarter profits on Tuesday. J&J earned $4.1 billion, an increase of 28% from the previous year. Sales increased 7.3% to $21.4 billion. Sales in the US were strong, up 11%, and sales in the medtech sector were up 13%.
J&J stock fell 1.6% Tuesday afternoon to $159.87.
Despite legal issues, the company has maintained that its talc-based products do not cause cancer and are safe to use.No longer sold in the US
Although talc itself is not dangerous, this material comes from the same mines as harmful asbestos, so it can often be contaminated by asbestos fibers. These fibers can cause scarring and inflammation in the body, leading to the possibility of cancer and other conditions developing.
