J&J Offers $9 Billion To Talcum Powder Cancer Victims

The company announced in a securities filing late Tuesday that J&J will pay $9 billion to talcum powder cancer victims.

Johnson & Johnson shares on Wednesday climbed after the company proposed paying $8.9 billion to settle thousands of claims that its baby powder and other talc products caused cancer. 

More than 60,000 claimants have committed to support the proposed resolution, which would require approval in bankruptcy court, the company announced in a securities filing late Tuesday.

J&J’s stock closed nearly 4.5% higher Wednesday. The company’s market value stands at more than $430 billion.

The pharmaceutical giant also said its subsidiary LTL Management refiled for Chapter 11 bankruptcy protection after its first attempt faced legal challenges. The subsidiary is shouldering tens of thousands of talc lawsuits in a bid to reduce J&J’s losses from litigation and settlement. 

Some lawyers representing plaintiffs in the talc lawsuits called J&J’s proposal a “significant victory” in a legal fight that has lasted more than a decade. 

On Wall Street, some analysts were also encouraged by J&J’s move despite uncertainty around the final outcome of the proposal.

According to the Hindu, the Indian Patent Office has rejected Johnson & Johnson’s attempt to extend a monopoly on a lifesaving TB drug.

You can read more about this topic here.

Explore exclusive GGI coverage of Donald Trump’s assassination attempt.

Do you have a tip or sensitive material to share with GGI? Are you a journalist, researcher or independent blogger and want to write for us? You can reach us at [email protected].

Leave a Reply